Motorola Solutions to exit enterprise space with $3.45 billion sale to Zebra Technologies

(updated at 5:03 p.m. EST with clarifications on MOTOTRBO, channel-partner impact)

Motorola Solutions today announced an agreement to sell its enterprise unit to Zebra Technologies near the end of the year for $3.45 billion cash, which will allow the communications giant to focus on mission-critical communications for the government and public-safety markets.

“Last year, we undertook a thorough review of our strategy and concluded that the synergies between our government and enterprise businesses were not as great as the value we could create by being singularly focused on our core government and public-safety business,” Motorola Solutions Chairman and CEO Greg Brown said during an investor conference call. “Going forward, we will have absolute clarity of purpose and mission, as we serve customers globally with our suite of mission-critical communications solutions. “

Brown spoke optimistically about the prospects of Motorola Solutions proceeding as a company focused solely on mission-critical government and public-safety communications, noting considerable opportunities in the services and land-mobile-radio arenas. In addition, Motorola Solutions recent contract win with the Los Angeles Regional Interoperable Communications System Authority (LA-RICS) has highlighted the company’s initiative into public-safety LTE systems.

“From a FirstNet perspective, we continue to work closely with them,” Brown said. “The relationship is, quite frankly, as good as it’s ever been between Motorola Solutions and FirstNet. We’re very excited about embarking on the LA-RICS implementation, which will have to be concluded in 2015.

“Obviously, [the FirstNet buildout] occurred a little bit later than we thought a year or two ago, but we still think it’s a fantastic global opportunity. We look forward to working with FirstNEt and the requisite authorities around the globe.”

Motorola Solutions will retain its iDEN technology, as well its mission-critical portfolio, according to company spokesman Steve Gorecki.

“Sales of MOTOTRBO and other solutions that are part of Motorola Solutions’ professional commercial radio business will continue without limitation as part of the company’s continued government business,” Gorecki said in a statement e-mailed to IWCE’s Urgent Communications.

“Utilities and other critical-infrastructure customers around the world will continue to be able to select from a portfolio of mission-critical solutions from Motorola Solutions that includes ASTRO 25, TETRA and MOTOTRBO.”

Under the terms of the agreement, Motorola Solutions will sell Zebra Technologies all of its mobile-computing and advanced-data-capture technologies, including all assets acquired with the $3.9 billion purchase of Symbol Technologies in 2006.