MOUNTAIN VIEW, CA – Lenovo will acquire the Motorola Mobility smartphone business from Google for nearly $3 billion, the PC giant announced today. The agreement will significantly strengthen Lenovo’s position in the smartphone market, while enhancing its market presence in North America and Latin America.

Lenovo will pay about $2.91 billion, subject to certain adjustments, including $1.41 billion at closing, of which $660 million will be in cash and $750 million in Lenovo ordinary shares. The remaining $1.5 billion will be paid in the form of a three-year promissory note.

The deal is subject to regulatory requirements, customary closing conditions and any other needed approvals.

Lenovo, which in 2005 acquired IBM’s PC business and its legendary PC brand, will now acquire world-renowned Motorola Mobility, including the Motorola brand and Motorola Mobility's portfolio of innovative smartphones like the Moto X and Moto G and the DROID Ultra series.  In addition to current products, Lenovo will take ownership of the future Motorola Mobility product roadmap.

Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property.  Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.

Motorola Mobility is currently the third leading Android smartphone manufacturer in the US and third leading manufacturer overall in Latin America.

Coincidentally, Motorola Mobility's primary EMS supplier, Flextronics, reported its earnings today. On a call with analysts, Flextronics chief financial officer Christopher Collier said the company does not expect any near-term negative impact from the deal. Motorola Mobility accounted for more than 10% of Flextronics' revenue in the December quarter, while Lenovo's PC unit is also a Top 10 customer of Flextronics.

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