Motorola Solutions has begun talks to sell its enterprise business to Zebra Technologies for $3.45 billion in a bid to beef up asset tracking tools for their clients, Health IT Outcomes reported earlier this month.
John Oncea writes the two companies expect to finalize the all-cash transaction by yearend.
The combined organizations intend to integrate Motorolaâ€™s real-time data capturing mobile platform with Zebraâ€™s enabling technologies to provide actionable insights for business decision makers in the manufacturing, retail, healthcare, and transportation and logistics industries.
â€œThe companiesâ€™ shared commitment to innovation will help customers harness powerful technology trends like the Internet of Things, location and motion sensing, and mobile enterprise cloud computing,â€ Zebra CEO Anders Gustafsson said.
â€œWe look forward to the months ahead as we integrate the businesses and continue to serve you with the highest quality,â€ he added.
The funds for the board-approved acquisition will come from cash on hand and new debt, subject to regulatory approvals and other closing conditions.
Greg Brown, Motorola Solutions chairman and CEO, said the sale gives the company the opportunity to improve its business for its government and public safety clients through the new group that will encompass a 7,100-strong global workforce.
The report said analysts described the acquisition as fortifying Zebraâ€™s position in the automatic identification and data capture market and strengthening its product portfolio with the addition of new products, and putting Motorola products in a more competitive light besides tablets and smartphones.