The transaction has a total equity value of approximately $3.9bn on a fully-diluted basis.
Upon completion of the transaction, Symbol will become a wholly owned subsidiary of Motorola and will be the "cornerstone" of Motorola’s Networks and Enterprise business, the vendor claimed. Motorola intends to maintain Symbol’s New York headquarters.
The acquisition is subject to customary regulatory approval and the approval of Symbol’s stockholders, and is expected to be completed in late 2006 or early 2007.
Ed Zander, chairman and chief executive at Motorola, said: “Everything is going digital, and everything digital is going mobile – this is especially evident in the way businesses are run today. Motorola and Symbol share the same vision of a digital, mobile world for enterprises that matches the world people enjoy at home and at play.
"This transaction significantly advances Motorola’s enterprise mobility strategy and is consistent with our focus on building on our already strong intellectual property portfolio and extending Motorola’s seamless mobility leadership. We are confident that this transaction will create significant value for stockholders by establishing a strong presence for Motorola in attractive adjacencies with enormous potential for sustained growth,” added Zander.
Greg Brown, president of Motorola’s Networks and Enterprise business, added: “Motorola and Symbol share a common vision of providing enterprise mobility solutions. Symbol’s world-class product platform complements Motorola’s vision of seamless mobility and will be the core of Motorola’s enterprise group. By combining our adjacent assets, expertise, customer and supplier bases and indust ry-leading products, we will together be a leading player in enterprise mobility. We can also deliver significant value to both our customers and stockholders.”
Sal Iannuzzi, president and chief executive of Symbol Technologies, said: “We believe this is an outstanding transaction for our stockholders, associates, customers and partners. Motorola is at the forefront of mobile communications and enterprise solutions technology, making it the ideal partner for Symbol.
"This combination meets our goal of delivering value to our stockholders while creating exciting future growth opportunities for Symbol’s associates and partners, and enhanced products and services for our customers. We look forward to working with the Motorola team to ensure a rapid and seamless transition,” added Iannuzzi.
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