Lenovos’s Motorola acquisition is a done deal. Motorola Mobility is officially a part of Lenovo as the $2.91 billion acquisition that was announced in January earlier this year has been completed.
The total acquisition cost is approximately US$2.91 billion, 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, states an official press statement from Lenovo.
“The iconic Motorola brand will continue, as will the Moto and DROID franchises that have propelled our growth over the past year. We will continue to focus on pure Android and fast upgrades, and remain committed to developing technology to solve real consumer problems.”
posted Rick Osterloh, Motorola President on a company blog.
Although, Motorola has been acquired, the brand will remain as a subsidiary of Lenovo, headquartered in Chicago. Google had initially bought Motorola Mobility for $12.5 billion in 2012, but it said at the time that it was mainly interested in the company’s patent portfolio. Now, the company 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.