Lenovo is acquiring Motorola Mobility from Google Inc (NASDAQ:GOOG) for $2.91 billion, according to TechCrunch. Google acquired Motorola in 2011 for $12.5 billion. The terms of the deal were undisclosed.
Lenovo is getting advised by Credit Suisse Group and Lazard Ltd. advised Google. Lenovo is also restructuring operations to create two new business groups that are focused on enterprise products and developing software ecosystems.
Motorola has been a liability for Google since the acquisition. Motorola lost $248 million in the last quarter alone. The company also lost $192 million in the same quarter a year ago.
Lenovo is on an acquisition spree. It was only a few days ago that Lenovo announced plans to buyout IBM’s x86 server business for $2.3 billion. Lenovo is dividing their operations into 4 business groups. The other two groups will focus on PCs and mobile products. The changes will go into effect on April 1st.
Google is keeping some of Motorola’s assets, including the patents.
?Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures,? stated Motorola Mobility CEO in a blog post. ?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.?
Confirmed: This article has been updated to confirm the acquisition.