Motorola — The Other One — Sells a Big Chunk of Itself
Reading that a big part of Motorola is being sold sounds like old news.
But it turns out this is another Motorola that is selling a large part of itself. Motorola Solutions — the half of the company never owned by Google — said Tuesday that it is selling its enterprise business to Zebra Technologies for $3.45 billion.
Motorola was once a single company, but split a few years ago into the handset unit (later bought by Google and soon to be sold to Lenovo) and Motorola Solutions, which makes mobile products for governments and businesses. At $3.45 billion, Motorola Solutions is getting more for what it is selling than Google is getting from Lenovo.
The sale marks a further disintegration of what was once a huge American electronics brand. With the sale of Motorola Mobility to Lenovo and the sale of Motorola Solutions’ enterprise business to Zebra, the remaining independent Motorola will be the government and public safety part, which will continue as Motorola Solutions.
The Zebra deal is expected to be completed by the end of the year.
“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 CEO Greg Brown said in a statement. “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 $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 and logistics and manufacturing, serving approximately 95 percent of the Fortune 500.