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Zebra Buying Motorola Solutions Tracking Technology for $3.45 Billion


Zebra Technologies just announced that it has entered into a definitive agreement to acquire Motorola Solution's Enterprise business for $3.45 billion.

How will Zebra buying Motorola Solutions tracking technology impact you?

While the answer to that question remains to be seen, System ID Vice President of Marketing Grant Wickes believes the acquisition will be positive in the long run, although the short-term fallout may prove challenging. “Integration (alignment and arrangement of channel account managers [CAMs] and channel marketing folks) is always disruptive in short term as decisions are frozen until personnel alignment is determined,” Mr. Wickes remarked in a recent Business Solutions magazine article. In a Zebra press release dated April 15, 2014, the company's Chief Executive Officer Anders Gustafsson says that the all-cash transaction will "transform Zebra into a leading provider of solutions that deliver greater intelligence and insights into our customers' enterprises and extended value chains." He added that it will also "further product innovation and deeper engagement with customers and partners." [caption id="attachment_4630" align="alignright" width="110"]Zebra Technologies Industry leader of barcode and enterprise printing, Zebra Technologies will acquire Motorola Solution's Enterprise business for $3.45 billion.[/caption] According to the release, Motorola Solutions will focus on its Government and Public Safety customers, while Zebra intends to strength its position in key industries such as Retail, Transportation and Logistics, and Manufacturing. The company also plans to expand its geographic reach. When combined, Zebra will have approximately 20,000 channel partners like System ID Barcode Solutions in more than 100 countries. Already an industry leader in  barcode and enterprise printing, asset tracking solutions, Internet of Things (IoT) solutions, and motion and location sensing, Zebra Technologies reported sales of $1.0 billion in 2013. This strategic move will add enterprise asset intelligence leader for the Connected Age to their growing portfolio.

Acquisition will broaden offerings in asset intelligence

The benefits to shareholders include:
  • Stronger combined platform with multiple growth opportunities
  • New and comprehensive product, technology, and IP portfolio
  • Leading end-to-end solutions across key industries with global reach
  • Highly diversified business mix
  • Creating synergies by maximizing efficiencies and scale
  • Attractive growth and free cash flow profile
Approximately 4,500 Motorola Enterprise employees are expected to join Zebra upon completion of this transaction. To read the full press release, click here. To read the Business Solutions article in which System ID Vice President of Marketing Grant Wickes is quoted, click here.