Lenovo completes acquisition of Motorola

Lenovo Group and Google jointly announced on Thursday that Lenovo's acquisition of Motorola Mobility from Google is complete, according to a press release sent to the Global Times on Thursday.

The transaction has been approved by several authorities, including those in the US, China, the EU, Brazil and Mexico, according to the press release.

With Motorola's brand and portfolio, Lenovo now becomes the world's third-largest smartphone maker, the press release said.

In the third quarter of this year, Lenovo ranked No.4 in terms of smartphone sales in global market, according to data released by market watcher International Data Corporation on Wednesday.

Motorola will run as a wholly owned subsidiary with its headquarters remaining in Chicago, and Lenovo welcomes its approximately 3,500 employees around the world, according to the press release.

The leading Chinese PC and smartphone maker announced in January that it would purchase Motorola from Google for $2.9 billion, as a move to boost its smartphone business in the Americas and Europe.

Lenovo has paid $660 million in cash and shares worth $750 million to Google and the rest will be paid in the form of a three-year promissory note, the press release said.

"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," Yang Yuanqing, Lenovo's chairman and CEO, was quoted as saying in the press release.

Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to the portfolio of patents, according to the press release.

The purchase will mainly help Lenovo expand its overseas markets but has little influence on the domestic market since there is no new move or product launch after the purchase announcement in January, Wang Jun, a smartphone industry analyst with Beijing-based market research firm Analysys International, told the Global Times Thursday.

In addition to over 2,000 patents, Motorola's most valuable assets are its cooperation relationship with local carriers and distribution channels in many countries, from which Lenovo's expanding smartphone business can benefit, he noted.

Google purchased Motorola Mobility in 2012 for $12.5 billion. The smartphone maker had a loss of $185 million in the third quarter of 2014 and its total losses after being purchased by Google reached $2.8 billion, news portal sina.com reported on Thursday.

But Lenovo is optimistic and expects to make the Motorola business profitable in four to six quarters, the press release said.