Tags: Zebra Tech | Motorola Solutions | Enterprise | Business

Zebra Tech to Buy Motorola Solutions' Enterprise Business

Tuesday, 15 Apr 2014 07:48 AM

Barcode printer maker Zebra Technologies Corp. said it would buy Motorola Solutions Inc.'s enterprise business, which makes rugged mobile computers, tablets and barcode scanners, for $3.45 billion in cash.

Motorola Solutions' enterprise business has been struggling as clients delay orders and cut spending.

The deal will help Zebra, whose products help track inventory in the supply chain, tap into the opportunity presented by the profusion of devices, ranging from cars to smoke alarms, connecting to the Internet.

The acquisition will be funded through a combination of $200 million cash on hand and $3.25 billion debt, comprising a credit facility and issuance of debt securities.

"Upon closing of the transaction, we intend to return the proceeds to our shareholders in a timely fashion," Motorola Solutions Chief Executive Greg Brown said in a statement.

Zebra's shares rose 5.4 percent to $72 before the bell, while Motorola Solutions' stock was down 1.2 percent at $63.

Morgan Stanley, the financial adviser to Zebra, is providing a financing commitment for the debt.

Motorola Solutions said it would retain its iDEN product portfolio, which was a part of its enterprise business.

Motorola Solutions also estimated an adjusted profit of 50 cents per share and sales of about $1.8 billion for the first quarter.

Analysts on average were expecting an adjusted profit of 51 cents per share on revenue of $1.88 billion, according to Thomson Reuters I/B/E/S.

Zebra estimated an adjusted profit of 88-91 cents per share and sales of $287 million-$289 million for the first quarter.

Analysts on average were expecting adjusted earnings of 83 cents per share on sales of $281.6 million.

Zebra said it expected the deal to add to earnings immediately after closing at the end of this year. About 4,500 Motorola Solutions' employees will join Zebra.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Companies
Barcode printer maker Zebra Technologies Corp. said it would buy Motorola Solutions Inc.'s enterprise business, which makes rugged mobile computers, tablets and barcode scanners, for $3.45 billion in cash.
Zebra Tech, Motorola Solutions, Enterprise, Business
294
2014-48-15
Tuesday, 15 Apr 2014 07:48 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved