Lenovo Group Ltd said Thursday it has closed its $2.91 bln acquisition of the Motorola handset unit from Google, paving the way to become the world's third player in the smartphone market. Lenovo acquired the Motorola brand and Motorola's portfolio of smartphones like Moto X, Moto G, Moto E and the DROID series, as well as the future Motorola product roadmap. The Chinese company will operate Motorola as a wholly-owned subsidiary. Motorola's headquarters will remain in Chicago. With the completion of the acquisition, Lenovo welcomes the addition of a new portfolio company with nearly 3,500 employees around the world - including about 2,800 in the U.S. - who design, engineer, sell and support Motorola's outstanding devices.

"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," said Yang Yuanqing, chairman and CEO, Lenovo. "This partnership has always been a perfect fit. Lenovo has a clear strategy, great global scale, and proven operational excellence. Motorola brings a strong presence in the U.S. and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination."

"Motorola is in great hands with Lenovo, a company that's all-in on making great devices," said Larry Page, CEO, Google.

Liu Jun, Lenovo executive vice president and president of Lenovo's Mobile Business Group, is chairman of the Motorola Management Board. Rick Osterloh, a Motorola veteran, will remain president and chief operating officer of Motorola.

"With the complementary strengths of our two companies, we expect to sell more than 100 million mobile devices this year - including smartphones and tablets - by leveraging the Lenovo brand?s leading market position in China, our shared momentum in emerging markets, and Motorola?s strong foothold in mature markets like the U.S.," said Liu Jun.

Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this rich portfolio of patents and other intellectual property. Motorola will retain over 2,000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.