Internet company Google will buy Motorola Mobility -- the cell-phone division of the U.S. communications firm Motorola -- for $12.5 billion in cash in what is the company's biggest acquisition to date.
The companies said in a statement on August 15 that they have entered into a definitive agreement under which Google will buy Motorola Mobility for $40 per share, a 63 percent premium over the closing price of Motorola Mobility shares on August 12.
The companies say the deal has been approved by the boards of both firms.
The deal gives the Internet giant direct control over one of the largest makers of smartphones that use Google's Android platform.
Motorola Mobility was separated from the rest of U.S. communications firm Motorola in January.
The company has remade itself as a maker of smartphones based on Google's Android software, but has struggled against Apple and Asian smartphone makers.
The purchase must first be approved by regulatory authorities.
compiled from agency reports
The companies said in a statement on August 15 that they have entered into a definitive agreement under which Google will buy Motorola Mobility for $40 per share, a 63 percent premium over the closing price of Motorola Mobility shares on August 12.
The companies say the deal has been approved by the boards of both firms.
The deal gives the Internet giant direct control over one of the largest makers of smartphones that use Google's Android platform.
Motorola Mobility was separated from the rest of U.S. communications firm Motorola in January.
The company has remade itself as a maker of smartphones based on Google's Android software, but has struggled against Apple and Asian smartphone makers.
The purchase must first be approved by regulatory authorities.
compiled from agency reports