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Telecommunications equipment industry

Motorola to Acquire Symbol Technologies for $3.9 Billion

Strategic Insights

— 1 min read

Motorola, a leading maker of mobile devices and wireless technology, is expanding its reach into the corporate market with the acquisition of Symbol Technologies, a prominent producer of scanners and other wireless technology used by manufacturers, retailers, and wholesalers. The deal, worth $3.9 billion, marks Motorola's latest move to diversify its product portfolio and tap into the growing demand for wireless solutions in the corporate and government sectors. Motorola plans to leverage Symbol's extensive customer base, which includes major brands such as Wal-Mart, FedEx, and Pepsi, to sell a range of products, including scanning devices, mobile computers, wireless networks, walkie-talkies, and mobile phones.

Key Takeaways:

  • Motorola will pay Symbol shareholders $15 per share, an 18% premium over Symbol's closing price of $12.71 on Friday.
  • The acquisition will give Motorola access to Symbol's customer base, including major brands such as Wal-Mart, FedEx, and Pepsi.
  • Motorola aims to expand its product portfolio beyond cellular handsets and sell wireless solutions to corporate customers and governments.
  • Symbol's sales in 2005 were $1.8 billion, a 1.9% increase from the previous year.
  • Upon closing the deal, Motorola will become one of the largest sellers of handheld scanners and devices that connect to networks wirelessly.
  • The acquisition is expected to close by early next year, subject to regulatory approval.

Statistics:

  • Motorola will pay $3.9 billion for Symbol Technologies.
  • The deal represents an 18% premium over Symbol's closing price of $12.71 on Friday.
  • Symbol's 2005 sales were $1.8 billion, a 1.9% increase from the previous year.
  • The acquisition will give Motorola access to a customer base with combined sales of $1.8 billion.
  • Symbol shareholders will earn $15 per share as part of the deal.
  • The deal price of $15 per share represents a 3-cent increase from the late trading price of $14.70 on Tuesday.

Sources:

  • Motorola press release, Tuesday
  • [1] Motorola announces $3.9 billion acquisition of Symbol Technologies. (Motorola press release, [date not specified])
  • [2] Symbol Technologies sales data for 2005. (Symbol Technologies, annual report, 2005)

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