Lenovo Group confirmed this week that it's agreed to buy Google's Motorola for approximately $2.91 billion, which is already being considered China's largest tech deal ever, according to Reuters.
This is Lenovo's second major U.S. purchase in under two weeks, as the China-based company tries to become a major player in the U.S. handset market.
Lenovo said late last week that it would purchase IBM's low-end server business for approximately $2.3 billion.
"Using Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick credibility and access to desirable markets and build critical mass makes a lot of sense," said Forrester Research analyst Frank Gillett, according to Reuters.
The deal effectively ends Google's attempt to make consumer mobile devices. The internet browsing company paid $12.5 billion for Motorola back in 2012, according to Reuters.
Google will still keep a majority of Motorola's mobile patents however, which is commonly considered the company's prized assets.
Shares in Google rose 2.2 percent to approximately $1,131 in after-hours trading, according to Forbes.
Lenovo is now one-step closer towards competing with companies like Samsung and Apple, as well as other Chinese smartphone companies.
"But Motorola has not been shooting the lights out with designs or sales volumes in smartphones. So the value is simply in brand recognition to achieve market recognition faster, and to expand the design and marketing team with talent experienced at U.S. and Western markets," said Gillet, according to Reuters.
The landmark deal is subject to approval by Chinese and U.S. authorities.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
