Google will run Motorola Mobility as a separate business that will remain a licensee of Android. Google also said Android will remain an open platform.
Google is buying cell phone maker Motorola Mobility for $12.5 billion in cash in what is by far the company's biggest acquisition to date.
Google Inc. will pay $40.00 per share, a 63 percent premium to Motorola's closing price on Friday.
In premarket trading, shares of Motorola Mobility Holdings Inc. are up 60 percent, or $14.72, to $39.19.
Google Inc. (GOOG), maker of the Android mobile-phone software, agreed to buy Motorola Mobility Holdings Inc. for about $12.5 billion, gaining wireless patents.
Both boards have approved the deal.
Google, whose Android software runs mobile phones made by Motorola Mobility and companies such as Samsung Electronics Co., gains patents it needs to compete against Apple Inc.’s iPhone. Last month, billionaire Carl Icahn urged Motorola Mobility to explore alternatives for its patent portfolio after Nortel Networks Corp. sold wireless-technology intellectual property for $4.5 billion.
Motorola Mobility, based in Libertyville, Illinois, rose 31 cents to $24.47 in New York Stock Exchange composite trading on Aug. 12.