Google announced Monday it is buying Libertyville-based Motorola Mobility Holdings Inc. for $12.5 billion in cash, a 63 percent premium to the closing price of the handset maker's shares on Aug. 12, according to a press release.
"Motorola Mobility’s total commitment to Android has created a natural fit for our two companies," said Larry Page, CEO of Google. "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 news comes just three months after Motorola announced it would keep its headquarters in Libertyville.
"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, CEO of Motorola Mobility. "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 officials say they expect the merger will enable the company 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 Andy Rubin, senior vice president of mobile at Google. "We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”