Lenovo has just confirmed its purchase of Google Inc's Motorola handset division, Motorola Mobility for $2.91 billion, making it China's largest-ever tech deal on U.S. soil, says Reuters.

Bloomberg reports that according to Google, the $2.91 billion sale includes $660 million in cash and $750 in Lenovo stock, totalling $1.41 billion, paid at the close of the deal. The remaining $1.5 billion will be paid in a three-year promissory note.

Google purchased Motorola back in 2012 for $ 12.5 million and this sale sees the end of Google's attempt at taking on consumer mobile devices. However, under the sale to Lenovo, the majority of Motorola's mobile patents [around 17,000] remain with the search engine giants, which are considered its prize assets.

Google seeks to offload its subsidiary handset business which has been losing hundreds of millions each quarter since the purchase, reports The Verge. "This fits perfectly with the strategy we have pursued for a couple of years," said Lenovo chairman and CEO Yang Yuanqing during an interview. "Before, we only had PCs as a core business. Now, we've built two pillars: the first is enterprise, and the second is this mobile business."

Reuters mentions that deal is the second for Lenovo on U.S. soil in a week as the Chinese electronics company said it would buy IBM's low-end server business for $2.3 billion.

Goog CEO Larry page posted the announcement on the company website saying the deal was signed and "is an important move for Android users everywhere." He continues that the "smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices. It's why we believe that Motorola will be better served by Lenovo-which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world."

Google seeks to focus on driving innovation across the Android system that will benefit smartphone users across the board. To see the full announcement on Google's blogspot, click here.