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Dublin: 12.03.2014 07.54AM
Internet search and advertising giant Google and Motorola Mobility have entered into an agreement whereby Google will acquire Motorola Mobility for US$40 per share in cash, or about US$12.5bn.
The board of directors of both companies have approved the transaction.
The acquisition of Motorola Mobility, an Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.
"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Larry Page, CEO of Google.
"Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers."
Sanjay Jha, CEO of Motorola Mobility, said the acquisition offers significant value for Motorola Mobility's stockholders and provides new opportunities for its employees, customers and partners worldwide.
"We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses," Jha said.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility's stockholders.
The acquisition is expected to be completed by the end of 2011 or early 2012.