This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Motorola Solutions Divests Enterprise Business for $3.5B

NEW YORK (The Deal) -- Zebra Technologies (ZBRA), a maker of barcode scanners, printers and other tools, said Tuesday it would acquire the enterprise unit of Motorola Solutions (MSI) in a deal valued at $3.45 billion.

The Motorola business to be acquired is a manufacturer of rugged computers, tablets and scanners used by retailers, logistics firms, manufacturers and other corporate users. The business generated sales of about $2.5 billion in 2013.

Lincolnshire, Ill.-based Zebra said that the purchase would create a $3.5 billion business that is able to offer a full line of mobile asset tracking technology. Post-deal Zebra would boast 20,000 channel partners in more than 100 countries and a portfolio of more than 4,500 U.S. and international patents issued and pending.

The company said it would fund the deal, which is not subject to a financing condition, with about $200 million in cash on hand and $3.25 billion in new credit facilities and the sale of debt.

"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," Zebra CEO Anders Gustafsson said in a statement. "It positions Zebra as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing."

The sale continues the dismantling of communications pioneer Motorola, which split its handset and cable box division off in 2010. That unit, Motorola Mobility, was acquired by Google (GOOG) in $12.5 billion, with Google later splitting it further and selling most of the assets.

Motorola Solutions retained the rugged computing and government and public safety operations. After the sale to Zebra the Schaumburg, Ill.-based company will be left with its iDEN product portfolio that was previously part of the enterprise business as well as its operations selling professional commercial radio products to government customers.

Company CEO Greg Brown said that the sale follows a strategic review initiated last year that determined that "synergies between our government and enterprise businesses were not as great as the value we could create by being singularly focused on our core government and public safety business."

Brown said proceeds from the sale will be returned to shareholders "in a timely fashion," with Motorola Solutions free to focus solely on its government business.

"Going forward, we will have absolute clarity of purpose and mission as we serve customers globally with our suite of mission-critical communications solutions," Brown said.

Morgan Stanley  (MS) is acting as financial adviser to Zebra and is providing a fully underwritten financing commitment for the debt component of the transaction. A Kirkland & Ellis team included partners Henry Kleeman, Scott Falk, Linda Myers and Neil Hirshman are providing Zebra with legal counsel.

Goldman Sachs (GS) and JPMorgan Securities are serving as financial advisers to Motorola, with Winston & Strawn acting as the company's legal adviser and Wachtell Lipton Rosen & Katz providing counsel to the Motorola board.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs