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| Source: Lenovo. From left: 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. Here Osterloh demonstrates the latest features of the new Nexus 6 smartphone in front of the company’s new logo. |
Lenovo will operate Motorola as a wholly-owned subsidiary, with Motorola’s headquarters in Chicago, US. With the completion of the acquisition, Lenovo welcomes nearly 3,500 employees around the world who design, engineer, sell and support Motorola’s 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 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 VP and President of Lenovo’s Mobile Business Group, is Chairman of the Motorola Management Board. Rick Osterloh, a Motorola veteran, will remain President and COO 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. “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 US.”
Motorola already has strong momentum in the marketplace led by new product launches and 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). The transaction has satisfied all regulatory requirements and customary closing conditions, including clearance by competition authorities in the US, China, EU, Brazil and Mexico, and by the Committee on Foreign Investment in the United States (CFIUS). This is the fifth time since 2005 that Lenovo has been cleared by CFIUS to acquire a US business.
Liu Jun, Lenovo Executive VP and President of Lenovo’s Mobile Business Group, is Chairman of the Motorola Management Board. Rick Osterloh, a Motorola veteran, will remain President and COO 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. “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 US.”
Motorola already has strong momentum in the marketplace led by new product launches and 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). The transaction has satisfied all regulatory requirements and customary closing conditions, including clearance by competition authorities in the US, China, EU, Brazil and Mexico, and by the Committee on Foreign Investment in the United States (CFIUS). This is the fifth time since 2005 that Lenovo has been cleared by CFIUS to acquire a US business.
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