Google has announced that it will be acquiring Motorola Mobility in a deal worth $12.5billion (£7.7billion), as it looks to expand and develop its Android mobile phone range.

The Internet giant’s sizeable purchase has been approved by the boards of each company and is due to completed by the end of 2011 or the start of 2012, providing it gains approval from shareholders and regulatory bodies.

Motorola is split into two branches, Mobility and Solutions. Motorola Solutions, which provides corporate technologies, will remain under the control of Motorola, while the Mobility branch, which is responsible for manufacturing and developing mobile phones, will merge with Google.

A joint statement from the two companies said: “The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing.”

Andy Rubin, senior vice president of mobile at Google, added that he expects the combination to “break new ground” for Android, while a solo Google statement said the purchase will allow it to “better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”

Google’s purchase has triggered action in the shares of Android mobile phone makers over the past two day, with HTC and Samsung among the beneficiaries.

Motorola was at the forefront of the Android operating system when it launched in 2007 but has fallen behind other manufacturers in the market. The deal has, unsurprisingly, reinvigorated interest in the company, with shares rising by 56 per cent on Monday.