GD to Acquire Motorola Unit for $825 Million
- By Patience Wait
- Aug 06, 2001
General Dynamics Corp. is set to purchase Motorola Inc.'s Integrated Information Systems Group for $825 million in cash and assumption of certain liabilities and ongoing obligations, General Dynamics announced Aug. 6.
The transaction has been approved by the boards of directors of both companies, subject to normal regulatory approval, and is expected to close within 60 days. The Motorola unit will become part of General Dynamics' Information Systems and Technology group.
Motorola of Schaumberg, Ill., provides integrated communications solutions and embedded electronic solutions to customers worldwide.
The Integrated Information Systems Group, based in Scottsdale, Ariz., provides defense and government customers with technologies, products and systems for secure communication, information assurance, situational awareness and integrated communications systems. The unit has 3,000 employees, with projected 2002 revenues of about $830 million.
The acquisition strengthens General Dynamics position in communications and information technology for military and government customers. It also broadens capabilities in command, control, communication, computers, intelligence, surveillance and reconnaissance systems, said Nicholas Chabraja, chairman and chief executive officer of General Dynamics, Falls Church, Va.
"In addition, there is real synergy with other elements within our Information Systems and Technology group," he said. "This is a business we know, and we believe it will achieve its full potential as part of General Dynamics."
Mark Fried, corporate vice president and general manager of the Motorola group, will remain president of the unit after the transaction is complete.
As part of the deal, Motorola and General Dynamics have executed a series of agreements that will give government customers continued access to applicable Motorola commercial technologies.