Lenovo has acquired smartphone maker Motorola in a deal worth $2.91 billion, previous owner Google has confirmed.
Google acquired Motorola in 2011 for $12.5 billion. The software giant sold off the set-top box division of Motorola for $2.35 billion last year. The smartphone maker has consistently lost money while under Google's rein.
"We believe that Motorola will be better served by Lenovo, which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world," Google's Larry Page wrote in a company blog post this afternoon. "This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere."
Lenovo will pay cash and stock for $1.41 billion of the deal, pending approval from the US and China. The balance of $1.5 billion will be paid in the form of a three-year promissory note.
Earlier this month, Lenovo acquired IBM's x86 server unit for $2.3 billion.
Google lost more than $7 billion on this Motorola deal.