Motorola is chopping off another one of its arms.
Motorola Solutions, the remainder of the company after Moto’s handset unit spun out in 2011 as Motorola Mobility, announced today that it’s selling its enterprise business to Zebra Technology for $3.45 billion.
The deal will allow Motorola Solutions to focus entirely on its government and public safety division. It gives Zebra a wealth of technology to become an enterprise asset tracking behemoth. The enterprise arm of Motorola Solutions was best known for asset tracking technologies like RFID and barcode scanners.
“This acquisition will transform Zebra into a leading provider of solutions that deliver greater intelligence and insights into our customers’ enterprises and extended value chains,” Zebra CEO Anders Gustafsson said in a statement.
The deal is expected to close by the end of the year. Zebra says it will pay $200 million in cash and $3.25 billion raised from a credit facility and debt security sales.
Motorola Solutions doesn’t get as much publicity as the Mobility division (which was sold to Google in 2011 and then to Lenovo earlier this year), primarily because it houses all of Motorola’s non-consumer offerings.
CEO Greg Brown says the company decided to sell off its enterprise division after realizing it didn’t mesh as well as previously thought with its government division.
“Going forward, we will have absolute clarity of purpose and mission as we serve customers globally with our suite of mission-critical communications solutions. This business is truly distinctive in its industry leadership, strong pipeline position, long-term track record of consistent profitability and cash flow, and an array of growth opportunities.”
Motorola Solutions sells enterprise unit to Zebra for $3.45B
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