Motorola buys Symbol Technologies for $3.9B
- By William Welsh
- Sep 19, 2006
Motorola Inc. has acquired mobility solutions provider Symbol Technologies Inc. for $3.9 billion in cash.
As part of the agreement, Motorola plans to purchase all outstanding shares of Symbol for $15 per share.
Motorola hopes to boost its enterprise-computing portfolio with the purchase, Chairman and CEO Ed Zander said in a statement.
"This transaction significantly advances Motorola's enterprise-mobility strategy, and is consistent with our focus on building on our already strong intellectual-property portfolio," he said.
Following the transaction, Symbol of Holtsville, N.Y., will become a wholly owned subsidiary of Motorola, and serve as the cornerstone of its networks and enterprise business.
Symbol designs and manufactures mobility solutions that are used in rugged mobile computing, advanced data capture, radio frequency identification, wireless infrastructure and mobility management.
Symbol has worked as a contractor to the Defense Department over the years. Most recently, the Army used the company's mobile computers in a battlefield system designed to counter remote-controlled, improvised explosive devices used against U.S. forces in Iraq.
Symbol has more than 5,000 employees and had annual revenue of $1.7 billion in fiscal 2005. The company holds more than 900 patents, according to its Web site.
Motorola of Schaumburg, Ill., ranks No. 39
on Washington Technology's 2006 Top 100
list of the largest federal IT contractors.
William Welsh is a freelance writer covering IT and defense technology.