Google and Motorola Mobility Holdings, yesterday annonced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for a total of about $12.5 billion.

According to a press release, the “Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences.”

Motorola Mobility will be run as a separate company that will continue licensing the Android platform from Google.

Larry Page, CEO of Google, said, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. 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.”

Google stresses that Android will continue to be an open platform. The transaction is subject to approval from competition authorities in the U.S. and Europe and is expected to be completed by the end of the year or early 2012. The boards of both companies have unanimously approved the transaction.

In a blog post, Larry Page explains that Motorola’s patents in the mobile phone industry is an important part of the deal:

“Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”


(via ComputerSweden)