Lenovo is nearing a deal to buy Googles Motorola handset unit for $3 billion, Reuters reported Wednesday, citing people familiar with the deal.
The unit produces the Moto X and Moto G smartphones.
Just last week Lenovo reached a deal to acquire a line of servers from IBM for $2.3 billion.
Lenovo, the No. 1 PC maker, has been diversifying into smartphones and other devices in the face of stagnant demand for personal computers. The company is based in China but has 2,300 employees at its headquarters in Morrisville.
Lenovo ranked fifth overall in worldwide smartphone shipments for all of 2013 as its shipments rose more than any of the top smartphone makers, according to market research firm IDC.
The worldwide smartphone market is dominated by Samsung, which racked up a 28.8 percent market share in the fourth quarter, and Apple, which posted a 17.9 percent market share.