Google, maker of the Android mobile-phone software, agreed to buy Motorola Mobility Holdings Inc. for about $12.5 billion, gaining wireless patents.
Motorola shareholders will get $40 a share in cash, the companies said in a statement today. That's 63% more than Motorola Mobility's closing price on the New York Stock Exchange on Aug. 12. 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. Google, based in Mountain View, California, added $1.64 to $563.77.