The two companies released a joint statement saying the boards of both companies had unanimously approved the deal, which is expected be completed by the end of this year, or early in 2012.
Earlier this year, Motorola split into two separate companies.
Motorola Mobility develops and manufactures mobile phones, while Motorola Solutions covers a wider array of technologies for its corporate customers and world governments.
The buying price of $12.5bn, or $40 per share, represents a 63% premium on the closing share price of Motorola Mobility on Friday.
Larry Page, Google’s chief executive, released a statement saying “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies.”
Sanjay Jha, the CEO of Motorola Mobility, also released a statement saying: “This transaction offers significant value for [our] stockholders and provides compelling new opportunities for our employees, customers and partners around the world.”
A move like this shows the world that Google is ready to be a serious competitor in the mobile phone market.
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