Google will buy Motorola’s former phone making division, Motorola Mobility, for $12.5 billion in cash, marking the search engine giant’s largest acquisition to date.

“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” said Google CEO Larry Page in a statement. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”

Google Android competes directly with iPhone, Blackberry, and Microsoft Windows-based devices. Mobility makes smartphones for the Android, but sales have floundered, especially against the iPhone/iPad.

Motorola Mobility split from the rest of the company in January.

In the sale, Google will pay $40.00 per share, 63 percent over Motorola’s closing stock price on Friday.

The Associated Press reported that Google is likely interested in Motorola’s many, many patents on mobile phone technology, as a consortium of its competitors, which included Microsoft, Apple and Blackberry maker Research In Motion, recently won the chance to buy thousands of patents from bankrupt Canadian networking gear maker Novell.

About The Author

John Guilfoil is the editor-in-chief of Blast: Boston's Online Magazine and the Blast Magazine Network. He can be reached at [email protected]. Tweet @johnguilfoil.

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