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.

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