Motorola Solutions

Motorola Solutions, Inc.
Public
Traded as NYSE: MSI
S&P 500 Component
Industry Telecommunications equipment
Predecessor Motorola, Inc.
Founded January 4, 2011 (January 4, 2011)
Headquarters Chicago, Illinois, U.S.
Key people
 Greg Brown (Chairman and CEO)
Products Two-way radios, radio systems, managed services and smart public safety applications
Revenue Decrease US$5.70 billion (2015)[1]
Decrease US$988 million (2015)[1]
Decrease US$610 million (2015)[1]
Total assets Decrease US$8.30 billion (2015)[1]
Total equity Decrease US$-106 million (2015)[1]
Number of employees
 14,000 (2015)[2]
Website www.motorolasolutions.com

Motorola Solutions, Inc. is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.[3]

History

Main article: Motorola

Motorola Solutions began trading as a separate independent company on January 4, 2011, under the NYSE symbol "MSI".[2] It is the legal successor of the old Motorola, Inc.; the transaction was structured so the old Motorola changed its name to Motorola Solutions and spun off Motorola Mobility as a separate company. After the split, Motorola Solutions comprised the previous Government and Public Safety division of Motorola Inc. (founded in 1928), the enterprise mobility division, and the cellular infrastructure group.

Motorola Solutions sold the cellular infrastructure business to Nokia Siemens Networks. The acquisition, which was originally announced in July 2010, was completed on April 29, 2011 for $975 million in cash.[4] As part of the transaction approximately 6,900 employees transferred to Nokia Siemens Networks. In the former Motorola parent company, it was the second largest division based on revenue.

On October 27, 2014, Motorola Solutions sold its Enterprise business to Zebra Technologies for $3.45 billion in cash.[5] As part of the sale, approximately 4,500 Motorola Solutions employees from locations throughout the world were transferred to Zebra. A large majority of this business was what was formerly Symbol Technologies, which Motorola, Inc. acquired in 2007.

In August, 2015, the company received a $1bn investment from Silver Lake Partners the technology specialized Private Equity firm [6] enabling a stock buyback and providing Silver Lake with two board seats. In the Q3 earnings call, Greg Brown described the private equity firms as "operationally connected into the business in a pretty seamless way", "partnering around managed and support services, as well as public, smart public safety and specifically some of the software areas. There is also an initiative we are launching with them around cost of goods, or what I would call above gross margin, both product and services".[7]

In December, 2015, the company announced that it would acquire Airwave, the UK based operator of the British public safety radio network servicing the police, fire and ambulance services across England, Scotland and Wales.[8]

Corporate structure

The company produces public safety and government products. Motorola develops analog and digital two-way radio, voice and data communications products and systems, Wireless LAN security, and Smart Public Safety Software, among others.

In 1999, Motorola was named as one of the defendants in a lawsuit arising out of alleged misrepresentations regarding the Iridium satellite communication business using third parties as conduits.[9]

In January 2003, Motorola was sued by the shareholders for concealing a huge loan. Motorola agreed to pay $190 million to conciliate the lawsuit in 2007.[10]

In August 2007, a class action lawsuit was announced against Motorola for artificially inflating the stock price through false and misleading statements.[11] In 2012, a $200 million settlement was reached.[12]

In January 2010, Motorola was sued for intentionally misstating the earnings projections and sales demands for the RAZR2 during the 2007 holiday shopping season. A settlement of $3.15 million was reached in June 2011.[13]

See also

References

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