Motorola Confirms Symbol Buyout
The deal will make Motorola the No. 2 supplier in the enterprise wireless LAN market, as well as give as giving the cellphone manufacturer a significant stake in the ruggedized device and RFID markets.
Motorola will pay $15 in cash for all outstanding Symbol shares. Subject to regulatory and shareholder approval, the deal will close late in 2006 or early in 2007. Symbol will operate as a wholly-owned subsidiary of Motorola once the buyout is completed. Motorola says it intends to maintain Symbol's Holtsville, N.Y. headquarters to serve as "the core of Motorola's global enterprise mobility business."
"Symbol could use some stability," says Jack Gold of J.Gold Associates, "and the investment that Motorola would bring could also propel the marketing, something Symbol has not been very good at." Symbol's shares rose a few pennies after the deal was announced. Symbol closed the day Monday with a stock price of $14.67 on the NYSE. Motorola was trading slightly down this morning.
— Dan Jones, Site Editor, Unstrung