Transaction Will Enhance Motorola’s Technology
Leadership and Advance the Company’s Vision of Seamless Mobility
Symbol will be the Core of Motorola’s Enterprise Mobility Business
SCHAUMBURG, Ill. and HOLTSVILLE, NY -- 19 September 2006 -- Motorola, Inc.
(NYSE: MOT) and Symbol Technologies, Inc. (NYSE: SBL) announced today that the
two companies have signed a definitive merger agreement, under which Motorola
has agreed to acquire all of the outstanding shares of Symbol for $15 per share
in cash. The transaction has a total equity value of approximately $3.9 billion
on a fully-diluted basis. As of June 30, 2006, Symbol had approximately $200
million of net cash.
Symbol is a leader in designing, developing, manufacturing and servicing
products and systems used in end-to-end enterprise mobility solutions featuring
rugged mobile computing, advanced data capture, radio frequency identification
(RFID), wireless infrastructure and mobility management. The company’s products
and services help customers increase workforce productivity, improve customer
service and enhance operational efficiencies by delivering information in
real-time, as people, information and assets are on-the-move. Symbol is
recognized as an industry leader in technology innovation, with a world-class
product portfolio and valuable intellectual property. In addition, Symbol has a
strong partner network and possesses deep domain knowledge and expertise in key
verticals including retail, travel and transportation, manufacturing, wholesale
distribution and healthcare.
“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,” said Motorola Chairman and CEO, Ed
Zander. “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.”
“We believe this is an outstanding transaction for our stockholders,
associates, customers and partners,” said Sal Iannuzzi, President and CEO of
Symbol Technologies. “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.”
“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,” said
Greg Brown, president of Motorola’s Networks and Enterprise business. “By combining
our adjacent assets, expertise, customer and supplier bases and
industry-leading products, we will together be a leading player in
enterprise mobility. We can also deliver significant value to both our
customers and stockholders.”
The acquisition of Symbol complements Motorola’s vision to deliver seamless
mobility solutions to the globe. Motorola’s Networks and Enterprise business
has more than 65 years of experience in meeting the mission-critical
requirements of public safety, government and enterprise customers worldwide.
This acquisition strengthens Motorola’s breadth of product solutions and
introduces an extensive array of experienced channel partners to provide our
seamless mobility experience to the enterprise.
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. Motorola intends to maintain Symbol’s Holtsville, N.Y.
headquarters, which will be the core of Motorola’s global enterprise mobility
business and serve as a centre of excellence.
The transaction is expected to be accretive to Motorola’s earnings per share in
the first year following closing, excluding certain non-cash charges relating
to amortization associated with acquired intangibles and other one-time
accounting and transaction-related costs. 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.
The acquisition of Symbol will not affect the pace of Motorola's share
repurchase activity.
About Symbol Technologies
Symbol Technologies, Inc., The Enterprise Mobility Company™, is a recognized
worldwide leader in enterprise mobility, delivering products and solutions that
capture, move and manage information in real time to and from the point of
business activity. Symbol Technologies enterprise mobility solutions integrate
advanced data capture products, radio frequency identification technology,
mobile computing platforms, wireless infrastructure, mobility software and
world-class services programs. Symbol Technologies enterprise mobility products
and solutions are proven to increase workforce productivity, reduce operating
costs, drive operational efficiencies and realize competitive advantages for
the world's leading companies. More information is available at www.symbol.com.
Source: Motorola press release
MIAMI, FL – 19 September 2006 – Motorola, Inc. (NYSE:MOT) today announced the
availability of the Motorola FX2000xg GSM fixed wireless phone for the Latin
America market. Rich in features, the phone enables consumers to communicate
and maintain a fixed wireless phone for their office or home without the need
for a landline.
