Lenovo acquires Google’s Motorola Mobility business for $2.91 billion
On Thursday, January 30, a number of sources reported that Lenovo, a Chinese multinational technology company, will purchase Google's Motorola Mobility business for $2.91 billion.
According to The VAR Guy, an online information technology resource, this deal will give Lenovo the opportunity to break into the American smartphone market. In a Google blog post, CEO Larry Page explained that Lenovo, which recently surpassed Hewlett Packard as the largest personal computer (PC) manufacturer in the world, will be able to better serve the Motorola Mobility business, which includes products like the Moto G and the Moto X.
"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," said Yang Yuanqing, Lenovo chairman and CEO, in a press statement. "We will immediately have the opportunity to become a strong global player in the fast-growing mobile space."
Dennis Woodside, CEO of Motorola Mobility, added that this deal will give the company "a rapid path to achieving [its] goal of reaching the next 100 million people with the mobile Internet."
This is the second big acquisition for Lenovo in the past week. Previously on this blog, we reported that Lenovo had purchased IBM's x86 server business for $2.3 billion, enabling the company to position itself as a leading mobile device and enterprise server company.
Lenovo is just one example of the many companies that use business acquisitions as a way to evolve in particular industries. Of course, these processes can be complicated, which is why the assistance of merger and acquisition consultants can be invaluable.