Lenovo Closes $2.91 Billion Deal for Motorola
In buying the handset maker from Google, Lenovo becomes the world's third-largest smartphone maker, behind Samsung and Apple.Lenovo has completed its $2.91 billion acquisition of Motorola Mobility, making the Chinese systems maker the world's third-largest smartphone vendor and building on the promise of its officials to become a major player in all areas of computing. Lenovo officials unveiled the closing of the deal Oct. 30, 10 months after announcing its intent to buy Motorola from Google and less than a month after completing its $2.1 billion acquisition of IBM's x86 server business. The two deals were similar as far as their impact on Lenovo, which already had sold its own line of x86 servers. However, the IBM deal propelled the company into the No. 3 slot of global server vendors, behind Hewlett-Packard and Dell. Now Lenovo, which already offered a portfolio of smartphones, has become a major player in the highly competitive smartphone space. The company is hoping that the IBM and Motorola deals will follow a similar path to Lenovo's $1.25 billion acquisition in 2005 of IBM's PC business, which helped propel Lenovo past HP and Dell into the top spot among global PC vendors. The acquisitions are part of Lenovo's larger PC Plus initiative to become a dominant player in computing areas beyond PCs.
"When we woke up today, our company was suddenly the world's #3 smartphone maker," Gavin O'Hara, Lenovo's global publisher, said in a post on the company blog. "Lenovo's brief but proud history in smartphones gets a massive boost from adding the well-established Moto and—most importantly—nearly 3,500 new colleagues around the world."