Summary
Motorola Solutions, Inc. (MSI) announced on March 28, 2018, the completion of its acquisition of Avigilon Corporation, a Canadian company specializing in video analytics and security solutions. This strategic move, valued at approximately US$1.0 billion including net debt, was approved by Avigilon's shareholders and the Supreme Court of British Columbia. The acquisition was funded through a combination of cash on hand, a new three-year term loan of $400 million, and existing revolving credit facilities. This acquisition significantly expands Motorola Solutions' capabilities in the video security and analytics market, aligning with the company's strategy to enhance its comprehensive public safety and enterprise security offerings. Investors should view this as a move to strengthen MSI's competitive position and drive future growth in a key technological area.
Key Highlights
- 1Motorola Solutions (MSI) completed the acquisition of Avigilon Corporation on March 28, 2018.
- 2The acquisition's total enterprise value was approximately US$1.0 billion, including Avigilon's net debt.
- 3Avigilon was acquired for CAD$27.00 per share, with its shareholders and the Supreme Court of British Columbia approving the deal.
- 4The acquisition was funded by cash, a new $400 million three-year term loan, and the company's existing revolving credit facility.
- 5Avigilon now operates as a wholly-owned subsidiary of MSI, ceasing to be a public company in Canada.
- 6This acquisition bolsters MSI's presence in video analytics and security solutions.