Lenovo has completed its takeover of Motorola Mobility, with the Chinese manufacturer forking out almost $3 billion for the American smartphone maker.
With Motorola Mobility having been offloaded by former owner Google, Lenovo has confirmed that its proposed takeover has now been finalised. The final fee agreed between the two companies is $2.81 billion (£1.75bn).
While Lenovo has been a key player in the Chinese smartphone space for some time, its acquisition of Motorola should help the laptop giant grow its mobile presence in western markets.
“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,” Yang Yuanqing, Lenovo’s Chairman and CEO said in making the announcement.
“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.”
For those worried about the Motorola name disappearing from retailers’ shelves, fret not. Lenovo has confirmed it will operate Motorola as a wholly-owned subsidiary with the company’s HQ to remain in Chicago.
The takeover will see almost 3,500 employees move to fall under the Lenovo ownership.
“In Lenovo we have a partner that shares our mission and that brings global scale, a diverse product portfolio and a track record of seizing strategic opportunities and making the most of them,” Motorola Mobility President Rick Osterloh said of the deal.
“Together we will go farther, faster.”
He added: “With an impressive portfolio of smartphones, wearables and PCs, our two companies will be uniquely positioned to push the boundaries of choice and value, and bring exciting new experiences to people everywhere.”
Having shipped of Motorola Mobility just a few short years after acquiring the brand, it appears Google’s interest in the company only ever extended as far as the many patent Motorola held.
“Motorola is in great hands with Lenovo, a company that’s all-in on making great devices,” Google CEO Larry Page said.
Motorola recently partnered with Google to produce the search giant’s latest smartphone, the Nexus 6.
Over the past 18 months Motorola has revived its ailing smartphone efforts, launching the competitively priced Moto G, flagship Moto X and, most recently, the round Moto 360 smartwatch.
Read More: Moto G vs Nexus 5
