--Motorola Solutions plans to buy Psion PLC for $200 million
--Deal represents 46% premium to Thursday's closing price
--Motorola Solutions says deal will expand its margins after
realized cost, revenue synergies, should add to earnings in the
first full year
(Updates to add background on Psion beginning in the 3rd
paragraph, quote from Psion chairman in the 4th paragraph,
background on Motorola Solutions beginning in the 5th paragraph,
deal to expand margins and add to earnings in the first full year
in the 6th paragraph and latest available share price for Motorola
Solutions in the 10th paragraph)
By Melodie Warner and Ian Walker
Motorola Solutions Inc. (MSI) plans to acquire Psion PLC
(PON.LN) for 129.3 million pounds ($200 million) as it looks to
expand its lineup of rugged mobile computers.
Motorola Solutions will pay 88 pence ($1.36) a Psion share in
cash, representing a 46% premium to Thursday's closing price of
60.5 pence.
Psion designs heavy-duty handheld computers for commercial and
industrial applications. The London-based company has about 830
employees, customers in more than 50 countries and had 2011 revenue
of GBP176 million ($273 million).
"Psion is a compelling opportunity to strengthen our
industry-leading, mobile-computing portfolio with ruggedized
handheld products and vehicle-mount terminals that will deepen our
presence in the global markets in which we compete," said Chairman
and Chief Executive Greg Brown.
Motorola Solutions--a provider of public safety radios, handheld
scanners and telecommunications network gear--has seen its bottom
line weighed down by charges in recent quarters, even as sales
grow.
The company said the deal will expand its margins after realized
cost and revenue synergies, and should add to earnings in the first
full year.
Motorola Solutions was created last year in the split of
Motorola Inc., which spun off the higher-profile mobile-devices
maker Motorola Mobility Holdings Inc. Google Inc. (GOOG) completed
its $12.5 billion acquisition of Motorola Mobility last month.
Certain shareholders owning a combined stake of 27% have agreed
to accept the offer and the acquisition is expected to close in the
fourth quarter.
Goldman Sachs International is acting as financial adviser to
Motorola Solutions; Canaccord Genuity Hawkpoint is acting as
financial adviser to Psion.
Motorola Solutions shares were trading higher at 19 cents higher
at $47.54.
Write to Melodie Warner at melodie.warner@dowjones.com