Lenovo acquired Motorola from Google

In January this year, Lenovo announced it was going to buy Motorola Mobility business this year from Google. Now this deal is signed, Lenovo acquired Motorola from Google in $2.91 Billion. While Motorola is now a Lenovo Company, the brand will remain a subsidiary based out of Chicago. Google bought Motorola in 2012 for $12.5 Billion, at the time stating that it was interested in its patent portfolio. Now, Google maintains most of the patents and passes on the handset business to Lenovo.

Motorola Mobility, a Google company, creates mobile devices and wireless accessories that simplify, connect and enrich people lives. The acquisition of such an iconic brand, innovate product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. This deal made Lenovo the world’s third bestselling smartphone maker after Apple and Samsung.

Lenovo is the world’s bestselling PC maker, a position it attained after the takeover of IBM’s personal computer business in 2005. Its smartphones are already selling in Asia and the Middle East, but they have not been sold in North America and Western Europe. Lenovo and Motorola together form the third largest smartphone player worldwide, pushing rival Xiaomi from the No 3 position to No 4, according to date from IDC.

IDC worldwide smartphone data showed Samsung leading with 23.8%, followed by Apple with 12%, Xiaomi with 5.3%, and Lenovo following closely with 5.2%, and LG with 5.1%. Lenovo has a very good business in India through the offline channel and Motorola is present only on line. Since its resurrection early this year, Motorola has sold more than two million smartphones, including the Moto G, Moto X, and Moto E. The Motorola-Lenovo combine intends to sell about 100 Million smartphones and tablets globally by the end of march next year, while Lenovo aims to bring Motorola back to profitability within four to six quarters.

Motorola will operate their Motorola solutions as a separate business and is not a part of acquisitions. Motorola business formally split in 2011.