Google is buying cell phone maker north suburban-based 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.
The companies say the deal has been approved by the boards of both. In a statement announcing the acquisition, Google CEO Larry Page said, "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers."
The deal gives Google direct control over the maker of many of its Android phones. In premarket trading, shares of Motorola Mobility Holdings Inc. are up 60 percent, or $14.72, to $39.19.
Earlier this year, Motorola Mobility's CEO announced the company would be staying put in Illinois thanks to a 10-year benefit package from the governor. Motorola Mobility has about 3,000 employees.