Google acquires Motorola for $12.5 billion

Google has agreed to buy Motorola Mobility for $12.5 billion in cash.

The deal has been approved by the boards of both companies, and will significantly strengthen Google's presence in the mobile phone market.

Android was the only operating system Motorola used across its entire range of devices, and Google CEO Larry Page predicted "explosive growth" for its products in future.

"The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences," Page wrote on the Google company blog.

"I am confident that these great experiences will create huge value for shareholders."

Google's senior vice president of mobile Andy Rubin claimed the deal would allow the company to "break new ground for the Android ecosystem." However, Motorola will be run as a seprate company, and Android will remain "an open platform and a vibrant open source community."

More than 150 million Android devices have been activated worldwide, with a further 550,000 added each day.

Page also commented on "anti-competitive patent attacks" from "companies including Microsoft and Apple" to restrict Android's growth by collaboratively buying patents from the now defunct Nortel.

"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."

The deal is due to complete by the end of this year, subject to the approval of Motorola's shareholders.