Lenovo has agreed to acquire Google's struggling US-based Motorola Mobility's smartphone business for $2.91bn, in a surprise move, what is claimed to be China's largest-ever tech deal.
The approval pending deal is anticipated to strengthen the Chinese PC maker's position in the global smartphone market, as well boost its smartphone business in North America and Latin America, and strengthen its grip in Western Europe.
Lenovo chairman and CEO Yang Yuanqing said the acquisition of such an iconic brand, innovative product portfolio and talented global team will immediately make Lenovo a strong global competitor in smartphones.
"We will immediately have the opportunity to become a strong global player in the fast-growing mobile space," Yuanqing said.
"We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business.
"Lenovo has a proven track record of successfully embracing and strengthening great brands - as we did with IBM's Think brand - and smoothly and efficiently integrating companies around-the-world."
Under the deal, Lenovo will gain access to Google's portfolio of patents and other intellectual property, as well as receive over 2,000 patent assets, including the Motorola Mobility brand and trademark portfolio.
Google, however, will continue to keep rights on majority of the Motorola Mobility patent portfolio, including existing patent applications and invention disclosures.
Google CEO Larry Page said that the latest move will enable the company to devote its energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.
"As a side note, this does not signal a larger shift for our other hardware efforts," Page said.
"As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet.
"With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo's hardware expertise and global reach will only help to accelerate this."
Google acquired Motorola Mobility in 2012 for $12.5bn, which was claimed to be the search major's most major acquisition in its history.