Google to acquire Motorola for $12.5 billion

Google has jumped on the acquisition train again, this time making the unexpected move of snapping up Motorola's mobile arm for a cool $12.5 billion.

The move, which will see Motorola Mobility continue to operate as a separate business, will help "supercharge the Android ecosystem" as well as enhancing competition, according to the tech giant.

"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Larry Page, Google's chief executive.

"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."

The board of directors for both firms have approved the deal, which is still subject to the usual regulatory approval process both in Europe and the US. Motorola Mobility shareholders also have to green light the deal, which is expected to close by the end of this year or early next.

Motorola Mobility's total commitment to Android has created a natural fit for our two companies.

"This transaction offers significant value for Motorola Mobility's stockholders and provides compelling new opportunities for our employees, customers, and partners around the world," said Sanjay Jha, Motorola Mobility's chief executive.

"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."

Google remains firmly committed to Android as an open platform and a vibrant open source community.

The companies were keen to stress that the Android platform will remain open and that Motorola Mobility will continue in its guise as an Android licensee.

"We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community," said Google's senior vice president of mobile, Andy Rubin.

"We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices."