Lenovo Group is acquiring the entire interest of Lenovo Mobile Communication Technology Ltd. from a group of investors led by Hony Capital, the private equity arm of Legend Holdings.

Consideration of the acquisition is approximately USD200 million in cash and Lenovo shares. In its press release, the company claims Lenovo Mobile now ranks third in China's mobile handset market and is the top domestic brand. The transaction is conditional upon Lenovo independent shareholder approval.

Yang Yuanqing, CEO of Lenovo Group, said: "As Lenovo's global PC business continues to make steady progress, we view mobile Internet as a key growth opportunity moving forward globally. Lenovo has prepared itself in this area. We have developed first class products with excellent hardware and operating systems integration. We will launch these innovative new products in China soon. With Lenovo's brand, strong channel and excellent operation platform, we're confident in our ability to execute our mobile Internet strategy and make it our next growth engine after the China business."