NEW YORK (TheStreet) -- Unwired Planet (UPIP) is soaring in pre-market trading Friday on the announcement Lenovo (LNVGY) will purchase a portfolio of patents from the mobile technology and licensing provider.
Before the bell, shares had exploded 62.3% to $2.11.
The patent purchase involves 21 patent families, including patents related to 3G and LTE mobile networks.
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Unwired Planet will receive $100 million in a cash payment from Lenovo.
"This investment is an extension of Lenovo's existing intellectual property portfolio," said Lenovo general counsel Jay Clemens in a statement. "It will serve the company well as we grow and develop our worldwide smartphone and mobile PC Plus business in new markets."
As part of the agreement, Lenovo has access to Unwired Planet's IP portfolio for several years. The deal is expected to close in 30 days.
After the transaction, Unwired Planet's portfolio will consist of around 2,500 issued and pending patents.