Becomes World’s #3 Smartphone Maker
Prepares for Even More Growth
Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) and Google (NASDAQ:
GOOG) announced today that Lenovo’s acquisition of Motorola
Mobility from Google is complete.
(from left to right) Liu Jun, EVP,
Lenovo, President Mobile Business Group, Lenovo and Chairman of the
Motorola Management Board; Yang Yuanqing, Lenovo Chairman and CEO;
and Rick Osterloh, President and COO, Motorola Mobility celebrate
the closing of Lenovo's acquisition of Motorola Mobility today.
Here Rick Osterloh demonstrates the latest features of the new
Nexus 6 smartphone in front of the company's new logo. (Photo:
Business Wire)
The acquisition of the Motorola brand and Motorola's portfolio
of innovative smartphones like 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 3,500 employees around the world - including
about 2,800 in the U.S. - who design, engineer, sell and support
Motorola’s outstanding devices.
“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,” said Yang Yuanqing, chairman and CEO, Lenovo.
“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 U.S. and other mature
markets, great carrier relationships, an iconic brand, a strong IP
portfolio and an incredibly talented team. This is a winning
combination.”
“Motorola is in great hands with Lenovo, a company that’s all-in
on making great devices,” said Larry Page, CEO, Google.
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,” said Liu Jun. “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 led by
highly successful new product launches and groundbreaking
innovations, which have provided solid growth. 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 2,000 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 US$2.91
billion (subject to certain post-close adjustments), including
approximately US$660 million in cash and 519,107,215 newly issued
ordinary shares of Lenovo stock, with an aggregate value of US$750
million, representing about 4.7 percent of Lenovo’s shares
outstanding, which were transferred to Google at close. The
remaining US$1.5 billion will be paid to Google by Lenovo in the
form of a three-year promissory note. A separate cash compensation
of approximately US$228 million was paid by Lenovo to Google
primarily for the cash and working capital held by Motorola at the
time of close.
The transaction has satisfied all regulatory requirements and
customary closing conditions, including clearance by competition
authorities in the U.S., China, EU, Brazil and Mexico, and by the
Committee on Foreign Investment in the United States (CFIUS). This
is the fifth time since 2005 Lenovo has been cleared by CFIUS to
acquire a U.S. business.
ABOUT LENOVO
Lenovo (HKSE: 992) (ADR: LNVGY) is a $39 billion global Fortune
500 company and a leader in providing innovative consumer,
commercial, and enterprise technology. Our portfolio of
high-quality, secure products and services covers PCs (including
the legendary Think and multimode YOGA brands), workstations,
servers, storage, smart TVs and a family of mobile products like
smartphones (including the Motorola brand), tablets and apps. Join
us on LinkedIn, follow us on Facebook or Twitter (@Lenovo) or visit
us at www.lenovo.com.
ABOUT GOOGLE
Google is a global technology leader, focused on improving ways
people connect with information. Google’s innovations in web search
and advertising have made its website a top Internet property and
its brand one of the most recognized in the world.
*DROID is a trademark of Lucasfilm Ltd. and its related
companies. Used under license.
For More information
A press kit is available here:
http://news.lenovo.com/MotorolaAcquisition
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20141030005409/en/
LenovoHong KongAngela
Lee, +852 2516 4810angelalee@lenovo.comorUnited StatesBrion Tingler, +1
917-528-1992btingler@lenovo.comorMotorolapress@motorola.comorGooglepress@google.com
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