Motorola to Sell Enterprise Business to Zebra for $3.45 Billion
Motorola Solutions Inc. has agreed to sell its Enterprise business — including the handheld computers and scanners it offers to the transportation industry — to Zebra Technologies Corp. for $3.45 billion.
The two said in an announcement that they expect the all-cash transaction, subject to closing conditions and regulatory approvals, to be complete by the end of the year.
Motorola’s Enterprise unit sells mobile computers and rugged handhelds for courier, delivery, less-than-truckload and warehousing operations. It also offers products such as barcode scanners and radio-frequency identification tags and readers.
The acquisition of that business would more than triple Zebra’s annual sales. It also would strengthen its position in the transportation, retail and manufacturing sectors, the company said.
Zebra, which provides barcode printers and readers, asset tracking and other technologies, said its sales totaled $1 billion in 2013. The business it is buying from Motorola Solutions had sales of about $2.5 billion last year.
Zebra CEO Anders Gustafsson said the acquisition “positions Zebra as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing.”
About 4,500 employees at Motorola Solutions are expected to join Zebra, the companies said in the announcement.
Motorola Solutions will retain the Integrated Digital Enhanced Network (iDEN) products that are part of its Enterprise business and will continue to offer voice and data communication products, including its commercial radio technology, to government and public safety customers.
Motorola Solutions Chairman and CEO Greg Brown said the Enterprise business is “an ideal fit” for Zebra.
“This transaction will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers,” he said.
|By Seth Clevenger|
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