Motorola's enterprise business sold for $3.45B to Zebra Technologies
by Computerworld Singapore
Enterprise asset intelligence company Zebra Technologies said it is acquiring Motorola Solutions' enterprise business for $3.45 billion in an all-cash transaction. This is a major move by Lincolnshire, Ill.-headquartered Zebra, which is known for its RFID and real-time location solutions. The acquisition will be funded through a combination of cash on hand and new debt, the company said in statement. It expects to fund the transaction with approximately $200 million in cash and $3.25 billion to be raised through a new credit facility and the issuance of debt securities. The transaction, which was approved by the boards of directors of both companies, is subject to regulatory approvals and is expected to be completed by the end of 2014.
After this acquisition, Zebra will enter the segment where Motorola's Enterprise business competes and strengthen its position in key industries including retail, transportation and logistics, and manufacturing and serve approximately 95 percent of the Fortune 500, the company said in its statement. "This acquisition will transform Zebra into a leading provider of solutions that deliver greater intelligence and insights into our customers' enterprises and extended value chains," said Anders Gustafsson, Zebra's CEO. "The Enterprise business will generate significant value for our shareholders by driving further product innovation and deeper engagement with our customers and partners. It positions Zebra as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing".
Why did Motorola sell its enterprise business arm? Motorola's enterprise business, with about $2.5 billion in sales, is an industry leader in mobile computing and advanced data capture communications technologies and services. "Our enterprise business is an ideal fit for Zebra," said Greg Brown, Motorola Solutions chairman and CEO".
This transaction will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers. Upon closing of the transaction, we intend to return the proceeds to our shareholders in a timely fashion."
WEBROOT® SecureAnywhere™ Internet Security Complete Beta
macOS Sierra & Windows 10 Pro 64