September 25th, for the acquisition of the U.S. Symbol technology has been news, Motorola officially announced, and Symbol technology company recently signed a merger agreement at the United States headquarters. Under the deal, Motorola agreed to buy Symbol's all issued shares at $15 per share. The total amount of the transaction is about $3 billion 900 million. As of June 30, 2006, Symbol had approximately $200 million in net cash.
It is reported that Symbol technology is a mobile business solutions provider, mainly involved in the design, development and manufacture of end to end enterprise mobile solutions products and systems. In addition, the company's business scope includes consolidation type mobile computing, advanced data acquisition, radio frequency identification (RFID), wireless infrastructure and mobile management.
"All digital products are moving," says Edward Zander, chairman and chief executive of Motorola. "This trend is very evident in today's business operations.". The deal will dramatically boost Motorola's corporate mobility strategy and coincide with our strong intellectual property portfolio and expanded business focus on seamless mobile leadership."
"We believe this transaction is important to our shareholders, our employees, our customers and our partners," said Sal Lannuzzi, President and CEO of Symbol technologies. Motorola is the industry leader in the field of mobile communications and enterprise solutions, and is an ideal partner for Symbol technologies. The merger with us to create value for shareholders, fully consistent, create exciting future development opportunities for employees and partners at the same time the goal, consistent with us to provide customers with more excellent products and service objectives. We hope to work closely with Motorola team to ensure quick and smooth completion of the transaction."
It is learned that other details are that once the transaction is completed, Symbol technology will become a wholly-owned subsidiary of Motorola, and will become an important part of Motorola's network and enterprise communications business. Motorola will retain Symbol technology's headquarters in Holtsville, New York. The headquarters will be the core of Motorola's global enterprise mobile business and will operate as a technology center.
In the first year after the completion of the transaction, the transaction is expected to enhance the Motorola stock earnings per share (excluding intangible assets and the acquisition of certain non cash expenses related to the amortization and other one-time accounting and transaction related costs). The acquisition is subject to approval by the authorities and Symbol technology shareholders, and is expected to be completed by the end of 2006 or early 2007.
In addition, the acquisition of Symbol technology will not affect Motorola's stock repurchase operations.