Zebra buys Motorola's enterprise unit for US$3.45b
The combined entity will become a major player in IoT devices & services market
[SINGAPORE] Zebra Technologies, a low-profile but key player in the inventory tracking business, made a big splash yesterday by announcing that it would pick up Motorola Solutions' enterprise business for US$3.45 billion in an all-cash transaction.
The deal, expected to be done by year-end, will create a behemoth in the specialised tracking industry that can keep tabs on everything from groceries, car parts to health monitors for athletes. With 2013 proforma sales of US$3.5 billion, the combined entity will have a workforce of around 7,000 globally, about 20,000 channel partners in more than 100 countries and a robust IP (intellectual property) portfolio, with approximately 4,500 US and international patents issued and pending.
Last year, Motorola Enterprise clocked around US$2.5 billion in sales while Zebra came in with US$1 billion. Despite its smaller size, Zebra expects to fund the transaction with about US$200 million of available cash on hand and US$3.25 billion through a new credit facility and the issuance of debt.
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