MUMBAI: Google Inc.is acquiring Motorola Mobility Holdings, Inc. for $12.5 billion, a move that will give it a trove of patents and help it penetrate deeper into the mobile market.

The buyout will protect the Android ecosystem in a competitive environment that is seeing an integration of software and hardware among players like Apple and Microsoft which did a deal with Nokia. Motorola Mobility will remain a licensee of Android while the latter will remain open. Google will run Motorola Mobility as a separate business.

 
“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. 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,” Google CEO Larry Page said.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders.

Averred Motorola Mobility CEO Sanjay Jha, “This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world.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.”

The transaction is expected to close by the end of 2011 or early 2012.