Summary
Motorola Solutions, Inc. (MSI) has filed an 8-K report detailing a significant strategic divestiture and providing pro forma financial information. The company announced an agreement to sell its Enterprise business to Zebra Technologies for $3.45 billion in cash, a transaction anticipated to close by the end of 2014. Importantly, the iDEN infrastructure business will be excluded from this sale. This divestiture will lead to the Enterprise business's results being presented as discontinued operations starting in the second quarter of 2014, with associated assets and liabilities classified as held for sale. The filing also includes pro forma financial information for fiscal years 2012, 2013, and the first quarter of 2014, adjusted to reflect the discontinued operations treatment of the Enterprise business. This pro forma data aims to provide investors with a clearer understanding of the company's ongoing core operations post-divestiture. Investors should pay close attention to the financial performance of the continuing businesses as presented in the supplemental pro forma information.
Key Highlights
- 1Agreement to sell the Enterprise business to Zebra Technologies for $3.45 billion in cash.
- 2Transaction is expected to close by the end of 2014.
- 3The iDEN infrastructure business will be excluded from the sale.
- 4Results of the divested Enterprise business will be presented as discontinued operations starting Q2 2014.
- 5Assets and liabilities of the Enterprise business will be classified as held for sale.
- 6Pro forma financial information for FY 2012, 2013, and Q1 2014 provided to reflect continuing operations.
- 7Corporate and general costs previously allocated to the Enterprise business will remain with MSI.