Motorola and Symbol Technologies announced a merger agreement Tuesday under which Motorola will acquire all of the outstanding shares of Symbol for $15 per share in cash, or $3.9 billion.
Symbol is a manufacturer of service products and systems used in end-to-end enterprise mobility solutions, specializing in rugged mobile computing, advanced data capture, radio frequency identification (RFID), and wireless infrastructure and mobility management.According to Kevin Prouty, senior director, manufacturing solutions at Symbol Technologies, Motorola is the company that makes the most sense for Symbol to align itself with from a product standpoint.
"This is a great opportunity to expand," Prouty said. "Symbol brings the enterprise piece to the group."Upon completion of the transaction, Symbol will become a wholly owned subsidiary of Motorola's Networks and Enterprise business. Motorola intends to maintain Symbol's Holtsville, N.Y. headquarters.
"The Long Island location of Symbol will become the enterprise mobility center for Motorola," Prouty said.
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 expected to be completed by late 2006 or early 2007.