Google is to acquire the mobile phone division of Motorola in a deal worth $12.5bn (£7.63bn).
Google said the acquisition of Motorola Mobility — which uses its Android software as the sole operating system on its phones — will enable Google to enhance competition in mobile computing.
Motorola Mobility will remain a licensee of Android and Android will remain open with Google running Motorola Mobility as a separate business.
Motorola has a history of more than 80 years in communications technology and products, and in the development of intellectual property. Its notable milestones include the introduction of the world’s first portable mobile phone nearly 30 years ago.
In 2007, Motorola was a founding member of the Open Handset Alliance that set out to make Android the first open platform for mobile devices.
Earlier this year, Motorola was split into two independent public companies, Motorola Mobility and Motorola Solutions after losing $4.3bn (£2.62bn) from 2007 to 2009.