8-KAcquisitions & DispositionsRegulation FDExhibits & Filings

Motorola Solutions, Inc. 8-K Report, Acquisition Completed (May 2, 2011)

Filed May 2, 2011For Securities:MSI

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.

Frequently Asked Questions

Motorola Solutions sold its business involved in designing, developing, manufacturing, purchasing, selling, integrating, installing, and servicing end-to-end cellular networks for public network operators.

Motorola Solutions received $975 million in cash consideration from the sale.

The financial results of the divested business were already classified as discontinued operations in prior financial reports, so this sale should not materially impact ongoing financial reporting in terms of operational results. A post-closing adjustment based on Net Assets at closing is possible.

Motorola Solutions retained $150 million of accounts receivable, cash, certain customer financing notes, and its iDEN infrastructure business, among other specified assets as per the acquisition agreement.