Lenovo's acquisition of Motorola Mobility from Google is complete. The acquisition of the Motorola brand and Motorola's portfolio of innovative smartphones such as Moto X, Moto G, Moto E and the DROIDTM series, as well as the future Motorola product roadmap, positions Lenovo as the world's third largest maker of smartphones.
Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola's headquarters will remain in Chicago. With the completion of the acquisition, Lenovo welcomes the addition of a new portfolio company with nearly 3500 employees around the world -- including about 2800 in the US -- who design, engineer, sell and support Motorola's outstanding devices.
Lenovo Australia and New Zealand managing director, Matt Codrington, said, "This acquisition empowers Lenovo to enter the Australian and New Zealand smartphone markets under the Motorola brand.
"Motorola has a strong heritage, both globally and locally, and we aim to build on that knowledge and expertise as we develop new products with the brand. At Lenovo A/NZ, we're looking forward to expanding existing relationships with our current retail partners JB Hi-Fi and Harvey Norman and enabling new partnerships in the future."
JB Hi-Fi and Harvey Norman spokespeople both welcomed the news.
Lenovo chairman and CEO, Yang Yuanqing, was equally enthusiastic : "Today, we achieved a historic milestone for Lenovo and for Motorola -- and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation.
"This partnership has always been a perfect fit. Lenovo has a clear strategy, great global scale, and proven operational excellence. Motorola brings a strong presence in the US and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination."
Liu Jun, Lenovo executive vice president and president of Lenovo's Mobile Business Group, is chairman of the Motorola Management Board. Rick Osterloh, a Motorola veteran, will remain president and chief operating officer of Motorola.
"Motorola has already built solid momentum in the market, and their recent results show consumers are excited about their exceptional products that stand out for their design and simplicity," Liu Jun said.
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"With the complementary strengths of our two companies, we expect to sell more than 100 million mobile devices this year -- including smartphones and tablets -- by leveraging the Lenovo brand's leading market position in China, our shared momentum in emerging markets, and Motorola's strong foothold in mature markets like the U.S."
Motorola already has strong momentum in the marketplace. Beyond smartphones, the Moto 360 watch has captured consumer attention and established Motorola as a company expanding into emerging mobile device areas. As previously stated, Lenovo expects to make the Motorola business profitable in four to six quarters.
Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this rich portfolio of patents and other intellectual property. Motorola will retain over 2000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.
The total purchase price at close was approximately $US2.91 billion (subject to certain post-close adjustments), including approximately $US660 million in cash and 519,107,215 newly issued ordinary shares of Lenovo stock, with an aggregate value of $US750 million, representing about 4.7 per cent of Lenovo's shares outstanding, which were transferred to Google at close. The remaining $US1.5 billion will be paid to Google by Lenovo in the form of a three-year promissory note. A separate cash compensation of approximately $US228 million was paid by Lenovo to Google primarily for the cash and working capital held by Motorola at the time of close.