Inventory-tracking firm Zebra Technologies has announced plans to buy Motorola Solutions’ Enterprise business for US $3.45 billion in an all cash transaction.
Motorola’s Enterprise unit also produces inventory-tracking technology, as well as data-capture and mobile-computing solutions.
Zebra Technologies said in an announcement that the purchase will be used to expand its Internet of Things (IoT) drive and help customers be smarter about themselves, their assets and their workforce.
The transaction, which was approved by the Boards of Directors of both companies, is subject to customary closing conditions including regulatory approvals. The transaction is expected to be completed by the end of 2014.
“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,” stated Anders Gustafsson, Zebra’s Chief Executive Officer. “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.”
“Our Enterprise business is an ideal fit for Zebra,” stated 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.”
With 2013 pro-forma sales of approximately US $2.5 billion (excluding sales of its iDEN products), Motorola’s Enterprise business is an industry leader in mobile computing and advanced data capture communications technologies and services. Through this transaction, Zebra will enter the segment where Motorola’s Enterprise business competes and strengthen its position in key industries including Retail, Transportation & Logistics, and Manufacturing and serve approximately 95 percent of the Fortune 500.
Image Credit: Twitter/Zebra Tech
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