Zebra Tech to acquire Motorola's enterprise biz for $3.45b

Tags: News
Wireless product company Zebra Technologies will acquire enterprise business of Motorola Solutions for $ 3.45 billion in an all-cash deal.

"This acquisition will transform Zebra into a leading provider of solutions. It positions Zebra as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing," Zebra's Chief Executive Officer Anders Gustafsson said in a statement.

Zebra, which recorded sales of $ 1 billion in 2013, provides technology solutions like barcodes, smart tags that are used for asset or product tracking in places like shopping malls, hospitals etc.

The acquisition will be funded through about $ 200 million of available cash on hand and $ 3.25 billion that is fully committed to be raised through a new credit facility and the issuance of debt securities, the statement said.

The deal was approved by the Boards of Directors of both companies and is subject to customary closing conditions including regulatory approvals.

It is expected to be completed by the end of 2014. The combined entity will have sales of about $ 3.5 billion.

"This transaction will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers," Motorola Solutions chairman and CEO Greg Brown said.

Approximately 4,500 employees are expected to join Zebra upon completing this transaction.

Motorola Solutions will continue to manufacture, design, integrate and deliver voice and data communication solutions for government and public safety customers worldwide, the statement said.

Through this transaction, Zebra will enter the segment where Motorola's enterprise business competes and strengthen its position in industries including retail, transportation and logistics and manufacturing and serve about 95 per cent of the Fortune 500 companies.

EDITORIAL OF THE DAY

  • Reservations, along with economic subsidies, must go to get India moving

    A young man, in his early twenties, starts an agitation demanding reservation for the community he represents.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

The China story isn’t over yet

China’s financial markets are currently in the eye of a ...

Anuja Sharma

Love yourself to love others

“There are two basic motivating forces: fear and love. When ...

Gautam Gupta

It's a 'blog eat blog' world out there

Let me tell you, fashion journalism has truly taken the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture