**Editor's Note: Please click here for a recap of the biggest channel-impacting mergers in Q4 2013.**
Lenovo, the China-based PC giant, is buying Motorola Mobility from Google for $2.91 billion. Lenovo expects the move will help strengthen its position in the smartphone market.
Google gets to keep the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. Lenovo will receive a license to this rich portfolio of patents and other intellectual property as part of an ongoing partnership with the search giant.
Motorola Mobility is the No. 3 Android smartphone manufacturer in the U.S. and No. 3 manufacturer overall in Latin America, but it has struggled to challenge the likes of Samsung and Apple under Google's leadership. Google bought the unit from Motorola just 20 months ago. The latest flagship device from the company – the Moto X – failed to sell as well as hoped.
“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. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space," said Yang Yuanqing, chairman and CEO of Lenovo. “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 the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere," said Larry Page, CEO, Google.
The deal is subject to regulatory approval and customary closing conditions.
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