Motorola makes offer for control of Vertex Standard
Motorola this week announced it would launch a $108 million tender offer to acquire a controlling interest in two-way-radio manufacturer Vertex Standard, which will operate as a joint venture.
On Monday, the Vertex Standard board of directors expressed its support of the tender offer, which would give Motorola subsidiary MI 80% ownership of Vertex Standard upon completion of the deal. Motorola’s joint-venture partner will be Tokogiken—a privately held Japanese company controlled by current Vertex Standard CEO and President Jun Hasegawa—which will own the remaining 20% of Vertex Standard.
The joint-venture company will keep the Vertex Standard name and become a Motorola subsidiary with headquarters in Tokyo, according to Motorola. The tender offer is expected to close in early January 2008.
A Motorola press release cited Vertex Standard’s strength in providing two-way-radio solutions for the amateur, marine and avionics sectors that are “highly complementary” with Motorola’s existing government and public-safety portfolios.
In addition to developing and selling products under the Vertex Standard brand, the joint venture will develop Motorola-branded, “higher featured, higher tier” products, according to the press release. A Motorola spokesman said the company could not provide greater detail at this time.
Hasegawa said in a statement that Vertex Standard believes the joint venture will benefit the company by letting it access Motorola’s considerable resources and global distribution channels.
Mark Moon, senior vice president of Motorola’s government and commercial markets division, also expressed optimism about the joint venture.
“We are extremely pleased to announce this transaction, which will improve our ability to address the growing needs of our 2-way radio customers worldwide,” Moon said in a statement. “We look forward to the continued leadership of Jun Hasegawa and making this new joint venture a success.”
