Xiaomi’s glory at the third spot has been short lived. With the acquisition of Motorola, Lenovo has displaced Xiaomi to become the world’s third largest smartphone maker. Lenovo has announced that it has completed the acquisition of Motorola Mobility from Google.

Lenovo gets the Motorola brand for approximately US$2.91 billion which includes $660 million in cash, $750 million in 519,107,215 newly issued Lenovo stock and the remaining US$1.5 billion as a three-year promissory note to be paid to Google.  Google keeps the majority of Motorola’s patents portfolio while Lenovo gets the Motorola brand, trademark, license to patents and the mobile business.

Motorola’s portfolio consists of notable smartphones such as Moto E, Moto G, Moto X and the DROID family, not to forget the Moto 360 smartwatch. Motorola will be a wholly owned subsidiary of Lenovo and retain its headquarters in Chicago, US. Motorola’s 3500 employees the world over will now be part of Lenovo.

Upon acquisition, the chairman and CEO of Lenovo, Yang Yuanqing said:

Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation.

Google’s CEO Larry Page said:

Motorola is in great hands with Lenovo, a company that’s all-in on making great devices.

Motorola had come up a lot in the past couple of years and under Google, it has focused on emerging markets and developed affordable smartphones Moto G and Moto E. Motorola’s latest offering is the DROID Turbo and it has built the Nexus 6 for Google. The company is also poised to come out with a new Tablet after the takeover by Lenovo.

Rick Osterloh, President and COO of Motorola Mobility says in his blog post, “Together we will go farther, faster. With an impressive portfolio of smartphones, wearables and PCs, our two companies will be uniquely positioned to push the boundaries of choice and value, and bring exciting new experiences to people everywhere.

Motorola takeover by lenovo

In the pic: Liu Jun, EVP and President Mobile Business Group, Lenovo; Yang Yuanqing, Chairman and CEO, Lenovo; and Rick Osterloh, President and COO, Motorola Mobility celebrate Lenovo’s acquisition of Motorola Mobility