Summary
Motorola, Inc. (now known as Motorola Solutions, Inc. after its split) filed an 8-K on July 19, 2010, reporting the entry into a Master Acquisition Agreement on July 16, 2010, to sell its cellular network infrastructure business to Nokia Siemens Networks B.V. for $1.2 billion in cash. This strategic divestiture marks a significant shift for Motorola, as it focuses on its core businesses. The sale includes specific assets and liabilities related to the end-to-end cellular network business, while certain assets like $150 million in accounts receivable, cash, customer financing notes, the iDEN infrastructure business, and key patents are retained by Motorola. The transaction is subject to customary closing conditions, with a target completion date on or before April 30, 2011. The agreement also includes non-compete clauses for Motorola for a period of two years post-closing, subject to certain exceptions. This divestiture is a key step in Motorola's strategic realignment, allowing the company to concentrate resources and capital on other segments of its operations. Investors should monitor the closing of this transaction and its impact on Motorola's future financial performance and strategic direction.
Key Highlights
- 1Motorola, Inc. agreed to sell its cellular network infrastructure business to Nokia Siemens Networks B.V.
- 2The transaction is valued at $1.2 billion in cash.
- 3The sale involves specified assets and liabilities of the end-to-end cellular network business.
- 4Motorola will retain certain assets, including $150 million of accounts receivable, cash, iDEN infrastructure, and key patents related to wireless network infrastructure.
- 5The agreement includes a two-year non-compete clause for Motorola concerning the divested business.
- 6The transaction is subject to customary closing conditions and has an outside termination date of April 30, 2011.
- 7This divestiture signals a strategic shift for Motorola, focusing on its core business areas.