Lenovo entered an agreement with Google on Wednesday to acquire Motorola Mobility for $2.91 billion.
Google will retain ownership of most of Motorola's patent portfolio, but the deal will give the Chinese PC company 2,000 patent assets, the Motorola Mobility brand, trademark portfolio, and a license to other intellectual property. Google will be paid $1.41 billion—$660 million in cash and $750 million in Lenovo ordinary shares—when the deal is finalized, and the search company will receive the remaining $1.5 billion in the form of a three-year promissory note.
"The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones," Lenovo chairman and CEO Yang Yuanqing said in a statement. "We will immediately have the opportunity to become a strong global player in the fast-growing mobile space. Fast Company has reached out to Lenovo and Google to comment on the news, but emails and phone calls were not immediately returned.
Google had purchased Motorola's handset division for $12.5 billion, a 63% premium over the stock price, back in 2011. But in the third quarter of 2013, the most recent earnings report available, the unit reported a $248 million operating loss. Last week, Lenovo also announced that it was buying IBM's low-end server business for $2.3 billion.