Zebra Technologies Completes Acquisition of Motorola Solutions’ Enterprise Business
Combination creates the leading global provider of end-to-end solutions to help simplify operations and empower mobile workers
Motorola Solutions to become singularly focused on mission-critical communications solutions for public safety and commercial customers LINCOLNSHIRE and SCHAUMBURG, Ill.,
Oct. 27, 2014 – Zebra Technologies Corporation (NASDAQ: ZBRA) and Motorola Solutions, Inc. (NYSE: MSI) today announced that Zebra has completed the acquisition of Motorola Solutions’ Enterprise business for $3.45 billion in cash. The transaction was funded with $200 million of cash on hand and $3.25 billion in new debt.
“This transformative acquisition creates one company with unparalleled capabilities and leading global brands in our industry,” stated Anders Gustafsson, Zebra’s chief executive officer. “Our scope and scale make us a more strategic business partner to our customers. We are well positioned to serve our businesses with solutions and services that help them achieve greater visibility for better enterprise asset intelligence. Our efforts are supported by superior global go-to-market channels and the most talented people in the industry. Together, we can provide the building blocks of Internet of Things solutions, as customers worldwide increasingly take advantage of data analytics and mobility to improve business performance.”
“With the successful close of this transaction, Motorola Solutions is now singularly focused on the very core that our company was founded and built upon – a business that continues to help build safer cities and thriving businesses around the world through innovative mission-critical communications solutions,” stated Greg Brown, Motorola Solutions chairman and CEO.
“Motorola Solutions is well-positioned for growth and success, building on our industry leadership, unrivaled brand, product development and customer relationships.”
As part of the sale, approximately 4,500 Motorola Solutions employees from locations throughout the world will transfer to Zebra. The transaction significantly expands and strengthens Zebra’s product portfolio, geographic reach, go-to-market channels and industries served. The combined organization has about 20,000 channel partners in more than 100 countries, and approximately 4,300 U.S. and international patents issued and pending. The combination of Zebra and Motorola Solutions’ Enterprise business will allow Zebra to offer its shareholders and customers the following;
Industry-leading data capture, mobile computing, specialty printing and asset tracking solutions and services
Stronger combined platform with multiple growth opportunities
New and comprehensive product, technology and IP portfolio
Leading end-to-end solutions across key industries with global reach
Highly diversified business mix
Synergies by maximizing efficiencies and scale
Attractive growth and free cash flow profile
Strategic Divestiture for Motorola Solutions
With the close of the transaction, Motorola Solutions will be exclusively focused on making its public safety and commercial customers’ operations faster, smarter and more efficient by providing innovative, industry-leading mission-critical communications, data and information. The company has 50,000 public safety and commercial customers in more than 100 countries and a number of attributes that the company believes will fuel future growth including:
An extraordinarily committed workforce that consistently delivers innovative solutions and is unmatched in expertise and experience
A growing solutions and services business
Leadership in next-generation technologies, such as public safety LTE
Investment in product and systems development
An unrivaled brand
Go-to-market and channel strength
A unique portfolio of intellectual property
The company plans to discuss its capital return plan as part of its third-quarter earnings news release and analyst conference call on Nov. 4, 2014.
About Motorola Solutions’ Enterprise Business
With 2013 pro-forma sales of approximately $2.5 billion, Motorola Solutions’ Enterprise business is an industry leader in mobile computing and advanced data capture communications technologies that serve customers in retail, transportation & logistics, and manufacturing. The sale includes Motorola Solutions’ wireless local area network (WLAN), Rhomobile and MESH
About Motorola Solutions
Motorola Solutions is a leading provider of mission-critical solutions and services for public safety and commercial customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.” To learn more, visit www.motorolasolutions.com. For ongoing news, please visit our newsroom or subscribe to our news feed.
Zebra (NASDAQ: ZBRA) makes businesses as smart and connected as the world we live in. Zebra tracking and visibility solutions transform the physical to digital, creating the data streams businesses need in order to simplify operations, know more about their business, and empower their mobile workforce. For more information, visit www.zebra.com/possibilities.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties.
Actual results may differ from those expressed or implied in the company’s forward-looking
statements. When used in this release and documents referenced herein, the words
“anticipate,” “believe,” “estimate,” “intend,” and “expect” and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive means of identifying these
statements. Similarly, statements herein that describe the transaction between Zebra and
Motorola Solutions, including its financial impact, and other statements of managements’
beliefs, intentions or goals also are forward-looking statements. These forward-looking
statements are based on current expectations, forecasts and assumptions and are subject to
the risks and uncertainties inherent in both Zebra’s and Motorola Solutions’ respective
industries, including the Enterprise business, market conditions, general domestic and
international economic conditions, and other factors. These factors also include the successful
integration of the operations by Zebra, and Zebra’s ability to implement plans, forecasts and
other expectations with respect to the Enterprise business and the ability of Motorola Solutions
to return proceeds of the transaction to its shareholders and the timing thereof. Customer
acceptance of Zebra’s products and solutions and competitors’ product offerings, and the
potential effects of technological changes are inherent risks associated with the ongoing
combined business. The continued uncertainty over future global economic conditions, the
availability of credit and capital markets volatility may have adverse effects on Zebra, its
suppliers and its customers. In addition, a disruption in Zebra’s ability to obtain products from
vendors as a result of supply chain constraints, natural disasters or other circumstances could
restrict sales and negatively affect customer relationships. Profits and profitability will be
affected by Zebra’s ability to control manufacturing and operating costs. Because of a large
investment portfolio, interest rates and financial market conditions will also have an impact on
results. Foreign exchange rates will have an effect on financial results because of the large
percentage of Zebra’s international sales. These and other factors could have an adverse effect
on Zebra’s sales, gross profit margins and results of operations and increase the volatility of
Zebra’s financial results. Descriptions of the risks, uncertainties and other factors that could
affect Zebra’s future operations and results can be found in Zebra’s filings with the Securities
and Exchange Commission. A detailed description of other risks and uncertainties affecting
Zebra is contained in Item 1A of Zebra’s 2013 Annual Report on Form 10-K and in its other
filings with the Securities and Exchange Commission. A detailed description of other risks and
uncertainties affecting Motorola Solutions, is contained in Item 1A of Motorola Solution’s 2013
Annual Report on Form 10-K , in Part II, Item 1A of Motorola Solutions’ Quarterly Report on
Form 10-Q for the period ended March 29, 2014 and in its other filings with the Securities and
Exchange Commission. These filings are available for free on the SEC’s website at
www.sec.gov, on Zebra’s website at www.zebra.com and on Motorola Solutions’ website at
www.motorolasolutions.com. The forward-looking statements made herein speak only as of the
date hereof and none of Zebra, Motorola Solutions or any of their respective affiliates assumes
any obligation to update or revise any forward-looking statement, whether as a result of new
information, future events, developments or otherwise, except as required by law.