Motorola Solutions Downsizing - Analyst Blog
24 Agosto 2011 - 10:15AM
Zacks
Motorola Solutions
Inc. (MSI) is further downsizing its wireless broadband
infrastructure solutions businesses. Yesterday, the company
announced that it has reached an agreement with private equity firm
Vector Capital to sale its Point-to-Point (Orthogon) and
Point-to-Multipoint (Canopy) wireless infrastructure assets. The
financial terms of this deal is undisclosed. However, the
divestment is expected to be closed by the end of September 2011,
subject to customary regulatory approval.
Earlier in April 2011, Motorola
Solutions was able to sell most of its wireless broadband
infrastructure assets to Nokia Siemens Networks for $975 million
after fighting a prolonged legal battle with Huawei Technologies in
China regarding intellectual property rights. Nokia Siemens
Networks is a 50-50 joint venture between Nokia
Corp. (NOK) and Siemens AG (SI). However,
Motorola solutions kept its iDEN business and other selected assets
and almost all the patents related to the wireless network
infrastructure business.
We believe further disinvestment of
wireless broadband assets is a move on the part of Motorola
Solutions to concentrate more on its core public safety businesses.
Motorola Solutions is the largest developer of the public safety
products commanding nearly half of the total market in the U.S. The
company is also the largest manufacturer of barcode readers and
small rugged mobile computers. Motorola Solutions’ business
strategy to focus only on stable government enterprises will help
the company to continue its solid performance in the near
future.
Vector will operate these
businesses as a single standalone company called Cambium Networks.
Motorola Solutions will now purchase broadband products from
Cambium, which will be required to install its major public safety
networks. Undoubtedly, at present, the most significant catalyst
for Motorola Solutions is the proposed installation of 4G LTE
networks for public safety. The U.S. government’s approval to
prioritize the 700 MHz D-Block spectrum for public safety purposes
will enhance this business.
MOTOROLA SOLUTN (MSI): Free Stock Analysis Report
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis Report
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