Feeds

Zebra grazes Motorola Solutions' enterprise business for $US3.45bn

Motorola to focus on government and public safety markets

Build a business case: developing custom apps

Motorola Solutions has offloaded its enterprise business to Zebra Technologies for $US3.45 billion in cash.

Motorola’s enterprise business offers all manner of kit for asset tracking and communications inside warehouses, during field service engagements and in odd spots like oil rigs. Its product range also includes Wi-Fi kit. Zebra is a barcoding specialist now spinning itself as offering “enterprise asset intelligence” and weaving Internet of Things strands into its story.

The boards of both companies have signed off on the deal, with Zebra CEO Anders Gustafsson saying it will “transform Zebra into a leading provider of solutions that deliver greater intelligence and insights into our customers’ enterprises and extended value chains.”

Motorola Solutions chair and CEO Greg Brown is happy because the deal “will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers.”

Investors in Motorola Solutions should be chuffed: Brown has promised “to return the proceeds to our shareholders in a timely fashion.”

Motorola Solutions' enterprise division hauled about $2.5 billion through the company's doors in 2013, dwarfing Zebra's 2013 tally of just $1.0 billion. The acquired entity's headcount of 4,500 is also rather larger than Zebra's 2,200 or so staff.

Zebra therefore has a challenge ahead of it to manage a much-expanded company.

Why did Motorola divest itself of these assets?

Brown says “...a thorough review of our strategy and concluded that the 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 & Public Safety business”. But Brown's not letting go of all of the Enterprise outfit's products: the iDEN radio service stays in Motorola’s hands.

The sale and the strategic review should come as no surprise: Brown raised the prospect of a sale back in October 2013. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.