Lenovo to Acquire Motorola Mobility from Google

Rese짯arch Tri짯ang짯le Park, North Caro짯li짯na, and Moun짯tain View, Cali짯for짯nia Janu짯ary 29, 2014: Leno짯vo (HKSE: 992) (ADR: LNVGY) and Goog짯le (NASDAQ: GOOG) today have ente짯red into a defi짯ni짯ti짯ve agree짯ment under which Leno짯vo plans to acqui짯re the Moto짯ro짯la Mobi짯li짯ty smart짯phone busi짯ness. With a strong PC busi짯ness and a fast-gro짯wing smart짯phone busi짯ness, this agree짯ment will signi짯fi짯cant짯ly streng짯then Lenovo셲 posi짯ti짯on in the smart짯phone mar짯ket. In addi짯ti짯on, Leno짯vo will gain a strong mar짯ket pre짯sence in North Ame짯ri짯ca and Latin Ame짯ri짯ca, as well as a foot짯hold in Wes짯tern Euro짯pe, to com짯ple짯ment its strong, fast-gro짯wing smart짯phone busi짯ness in emer짯ging mar짯kets around the world.

The purcha짯se pri짯ce is appro짯xi짯m짯ate짯ly US$2.91 bil짯li짯on (sub짯ject to cer짯tain adjus짯t짯ments), inclu짯ding US$1.41 bil짯li짯on paid at clo짯se, com짯pri짯sed of US$660 mil짯li짯on in cash and US$750 mil짯li짯on in Leno짯vo ordi짯na짯ry shares (sub짯ject to a share cap/floor). The remai짯ning US$1.5 bil짯li짯on will be paid in the form of a three-year pro짯mis짯so짯ry note.

Leno짯vo, which in 2005 acqui짯red IBMPC busi짯ness and its legen짯da짯ry PC brand, will now acqui짯re world-renow짯ned Moto짯ro짯la Mobi짯li짯ty, inclu짯ding the MOTOROLA brand and Moto짯ro짯la Mobility셲 port짯fo짯lio of inno짯va짯ti짯ve smart짯phones like the Moto X and Moto G and the DROID꽓 Ultra series. In addi짯ti짯on to cur짯rent pro짯ducts, Leno짯vo will take owner짯ship of the future Moto짯ro짯la Mobi짯li짯ty pro짯duct roadmap.

Goog짯le will main짯tain owner짯ship of the vast majo짯ri짯ty of the Moto짯ro짯la Mobi짯li짯ty patent port짯fo짯lio, inclu짯ding cur짯rent patent appli짯ca짯ti짯ons and inven짯ti짯on dis짯clo짯sures. As part of its ongo짯ing rela짯ti짯onship with Goog짯le, Leno짯vo will recei짯ve a licen짯se to this rich port짯fo짯lio of patents and other intellec짯tu짯al pro짯per짯ty. Addi짯tio짯nal짯ly Leno짯vo will recei짯ve over 2,000 patent assets, as well as the Moto짯ro짯la Mobi짯li짯ty brand and trade짯mark portfolio.

Moto짯ro짯la Mobi짯li짯ty enjoys out짯stan짯ding brand awa짯re짯ness around the world, and is curr짯ent짯ly the #3 Android smart짯phone manu짯fac짯tu짯rer in the U.S. and #3 manu짯fac짯tu짯rer over짯all in Latin America.

The acqui짯si짯ti짯on of such an ico짯nic brand, inno짯va짯ti짯ve pro짯duct port짯fo짯lio and incre짯di짯bly talen짯ted glo짯bal team will imme짯dia짯te짯ly make Leno짯vo a strong glo짯bal com짯pe짯ti짯tor in smart짯phones. We will imme짯dia짯te짯ly have the oppor짯tu짯ni짯ty to beco짯me a strong glo짯bal play짯er in the fast-gro짯wing mobi짯le space, said Yang Yuan짯qing, chair짯man and CEO of Leno짯vo. 쏻e are con짯fi짯dent that we can bring tog짯e짯ther the best of both com짯pa짯nies to deli짯ver pro짯ducts cus짯to짯mers will love and a strong, gro짯wing busi짯ness. Leno짯vo has a pro짯ven track record of suc짯cessful짯ly embra짯cing and streng짯thening gre짯at brands as we did with IBM셲 Think brand and smooth짯ly and effi짯ci짯ent짯ly inte짯gra짯ting com짯pa짯nies around-the-world. I am con짯fi짯dent we will be suc짯cessful with this pro짯cess, and that our com짯pa짯nies will not only main짯tain our cur짯rent momen짯tum in the mar짯ket, but also build a strong foun짯da짯ti짯on for the future.

Leno짯vo has the exper짯ti짯se and track record to sca짯le Moto짯ro짯la Mobi짯li짯ty into a major play짯er within the Android eco짯sys짯tem. This move will enable Goog짯le to devo짯te our ener짯gy to dri짯ving inno짯va짯ti짯on across the Android eco짯sys짯tem, for the bene짯fit of smart짯phone users ever짯y짯whe짯re, said Lar짯ry Page, CEO, Google.

As part of Leno짯vo, Moto짯ro짯la Mobi짯li짯ty will have a rapid path to achie짯ving our goal of rea짯ching the next 100 mil짯li짯on peo짯p짯le with the mobi짯le Inter짯net. With the recent laun짯ches of Moto X and Moto G, we have tre짯men짯dous momen짯tum right now and Lenovo셲 hard짯ware exper짯ti짯se and glo짯bal reach will only help to acce짯le짯ra짯te this, said Den짯nis Woodsi짯de, CEO, Moto짯ro짯la Mobility.

The tran짯sac짯tion is sub짯ject to the satis짯fac짯tion of regu짯la짯to짯ry requi짯re짯ments, cus짯to짯ma짯ry clo짯sing con짯di짯ti짯ons and any other nee짯ded approvals.

About Lenovo

Leno짯vo (HKSE: 992) (ADR: LNVGY) is a US$34 bil짯li짯on per짯so짯nal tech짯no짯lo짯gy com짯pa짯ny the lar짯gest PC maker world짯wi짯de and an emer짯ging PC Plus lea짯der ser짯ving cus짯to짯mers in more than 160 count짯ries. Dedi짯ca짯ted to excep짯tio짯nal짯ly engi짯nee짯red PCs and mobi짯le inter짯net devices, Lenovo셲 busi짯ness is built on pro짯duct inno짯va짯ti짯on, a high짯ly-effi짯ci짯ent glo짯bal sup짯p짯ly chain and strong stra짯te짯gic exe짯cu짯ti짯on. For짯med by Leno짯vo Group셲 acqui짯si짯ti짯on of the for짯mer IBM Per짯so짯nal Com짯pu짯ting Divi짯si짯on, the Com짯pa짯ny deve짯lo짯ps, manu짯fac짯tures and mar짯kets relia짯ble, high-qua짯li짯ty, secu짯re and easy-to-use tech짯no짯lo짯gy pro짯ducts and ser짯vices. Its pro짯duct lines include legen짯da짯ry Think-bran짯ded com짯mer짯cial PCs and Idea-bran짯ded con짯su짯mer PCs, as well as ser짯vers, work짯sta짯tions, and a fami짯ly of mobi짯le inter짯net devices, inclu짯ding tablets and smart pho짯nes. Leno짯vo, a glo짯bal For짯tu짯ne 500 com짯pa짯ny, has major rese짯arch cen짯ters in Yama짯to, Japan; Bei짯jing, Shang짯hai and Shen짯zhen, Chi짯na; and Ral짯eigh, North Caro짯li짯na. For more infor짯ma짯ti짯on see www.lenovo.com.

About Motorola Mobility

Moto짯ro짯la Mobi짯li짯ty, a Goog짯le com짯pa짯ny, crea짯tes mobi짯le devices and wire짯less access짯ories that sim짯pli짯fy, con짯nect and enrich people셲 lives. For more infor짯ma짯ti짯on, visit motorola.com/mobility.

About Google

Goog짯le is a glo짯bal tech짯no짯lo짯gy lea짯der, focu짯sed on impro짯ving ways peo짯p짯le con짯nect with infor짯ma짯ti짯on. Google셲 inno짯va짯tions in web search and adver짯ti짯sing have made its web짯site a top Inter짯net pro짯per짯ty and its brand one of the most reco짯gni짯zed in the world.