Google Inc announced its biggest deal ever, a $12.5 billion cash acquisition of mobile phone maker Motorola Mobility Holdings Inc .
The deal values Motorola Mobility at $40 per share in cash, a 63 percent premium to its Friday closing price on the New York Stock Exchange. The deal features a rich reverse breakup fee of $2.5 billion, according to a source close to the situation.
Google's biggest foray into hardware comes weeks after a failed attempt to buy patents from bankrupt Nortel, and gives it an intellectual property library in wireless telephony to wage war on Apple and Microsoft Corp.
