Chairman and CEO of Motorola Mobility Sanjay Jha speaks during a press event at the 2011 International Consumer Electronics Show at the Venetian January 5, 2011 in Las Vegas.
Google may have missed the mark with courting Chicago daily deals site Groupon, but it just scored big with another local brand.
In what is said to be the company's largest acquisition, Google is buying Libertyville-based Motorola Mobility for $12.5 billion in cash. The spin-off division of Motorola is responsible for RAZR and DROID products.
According to the Associated Press:
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.
Google CEO Larry Page says that the deal with "supercharge the entire Android ecosystem."
The deal gives Google direct control over the maker of many of its Android phones.
In May, Gov. Pat Quinn convinced Motorola Mobility Inc. to keep its corporate headquarters in suburban Chicago thanks to a state incentives deal.
After rumors to the contrary, Quinn and Motorola Mobility CEO Sanjay Jha announced the company would stay put, committing to spending $500 million in research and development to keep about 3,000 jobs in Illinois.
Google offered to purchase Groupon late last year for $6 billion, but the group-buying site turned down the offer.