Lenovo and Motorola Official

Google has announced that Chinese manufacturer Lenovo has agreed to acquire Motorola Mobility for $2.91 billion. The deal is expected to close in the coming months depending on the regulatory approvals in US and China.

In terms of the financial specifics, Lenovo will pay $1.41 billion in cash and stocks at the closing of the deal, and the rest 1.5 billion will be paid in a three-year promissory note.

Lenovo is basically getting the Motorola Mobility’s smartphone unit and around 2000 patents along with trademarks and brand. Google will be keeping majority of patents (around 15,000), Project Ara and Advanced Technology Group. Lenovo will also receive a license to the portfolio of Motorola patents, which Google is keeping.

To remind you, Google had originally acquired Motorola Mobility in 2012 after paying over $12 billion but patents were always stated to be the main reason behind the buying of a hardware marker by the search giant. Even at the time of Google’s Motorola acquisition, several analysts predicted that Google will dump Motorola’s smartphone unit down the line and the same has happened earlier today.

“The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space,” said Yang Yuanqing, chairman and CEO of Lenovo.