Summary
Motorola Solutions, Inc. (MSI) announced the completion of the sale of its enterprise cellular network infrastructure business to Nokia Siemens Networks B.V. on April 29, 2011. This strategic divestiture, executed under a Master Acquisition Agreement, generated $975 million in cash for MSI, with the company retaining certain assets like accounts receivable and its iDEN infrastructure business. The transaction also includes the assumption of specified liabilities by the purchaser. This sale marks a significant step in the company's strategic refocusing, allowing it to concentrate on its core businesses. Investors should note that the financial impact of this disposed business was already reflected as discontinued operations in recent financial statements. The completion of this sale is expected to streamline MSI's operations and enhance its strategic positioning. The immediate financial benefit is the substantial cash inflow, which can be utilized for various corporate purposes, including potential reinvestment, debt reduction, or shareholder returns.
Key Highlights
- 1Completion of the sale of Motorola Solutions' enterprise cellular network infrastructure business to Nokia Siemens Networks B.V. on April 29, 2011.
- 2Sale generated $975 million in cash consideration for Motorola Solutions.
- 3Motorola Solutions retained specific assets, including accounts receivable, cash, customer financing notes, and the iDEN infrastructure business.
- 4Purchaser assumed liabilities associated with the divested business.
- 5The transaction was conducted under a Master Acquisition Agreement dated July 16, 2010.
- 6The financial results of the divested business were already reported as discontinued operations.
- 7The sale is part of a strategic refocusing for Motorola Solutions.