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Motorola Acquires Symbol Technologies; Expands Enterprise Capabilities

Motorola has acquired, an enterprise mobility vendor, Symbol Technologies, to expand its enterprise capabilities. Motorola said the deal would contribute to earnings per share on an adjusted basis in the first year after closing. The company also said it will take certain unspecified non-cash charges relating to amortisation associated with acquired intangibles and other one-time accounting and transaction-related costs. Symbol jumped 15.4% in pre-market trading, while Motorola rose 0.4%.

With the deal, expected to close late this year or in early 2007, Motorola gains access to Symbol's arsenal of Radio Frequency Identification (RFID) technology, which is rapidly replacing traditional bar codes in many supply chains, as well as to Symbol's handheld computers, which the Holtsville, NY-based company has used to lead the enterprise wireless market.

"Everything is going digital, and everything digital is going mobile -- this is especially evident in the way businesses are run today. Motorola and Symbol share the same vision of a digital, mobile world for enterprises that matches the world people enjoy at home and at play," said Ed Zander, CEO and chairman of Motorola, in a statement.

"The main thing is Ed Zander is forcing his leaders and business units to look at the opportunity from a value chain perspective and identify the growth areas and expand in that context," said Bill Lesieur, director of Network Business Quarterly at Technology Business Research.

"He's trying to, in this case, play a bigger role in enterprise verticals," Lesieur said. He added that because of Symbol's ruggedised devices and point-of-sale devices, Symbol is complementary to Motorola's phone divisions. It will also be good fit with Motorola's networking business while also opening up RFID, professional services and enterprise solutions opportunities.

Symbol will become a wholly owned subsidiary once the transaction is completed and Symbol’s headquarters will remain in Holtsville, NY.


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