Menu
Motorola pays US$3.9 billion for Symbol

Motorola pays US$3.9 billion for Symbol

Motorola plans to acquire wireless mobile device developer Symbol Technologies Inc. for US$3.9 billion.

The acquisition will allow Motorola to offer enterprises handheld products that meet the needs of a range of workers, including those in warehouses, manufacturing facilities, offices and out in the field.

Motorola will also be able to offer enterprises products and services that manage and deliver data from end to end.

That's because while Symbol specializes in networks and devices that are used inside buildings, Motorola's focus is on developing equipment for networks that cover areas outside of offices. Combining the two means that Motorola can deliver a unique proposition to enterprises, said Ed Zander, Motorola's

chairman and chief executive, speaking during a press conference to discuss the acquisition. He envisions adding cellular and WiMax capabilities to Symbol devices so that they can operate over wide area networks outside of buildings.

Symbol makes a range of devices for businesses, including handheld computers that may include bar code scanners, RFID (radio frequency identification) technologies and Wi-Fi. The company also sells wireless local area networking equipment. The products are widely used by workers in warehouses and large retail outlets, and by delivery services.

Motorola also hopes to take advantage of a strong patent portfolio at Symbol. "Our mouths were watering when we got a look at their IP portfolio," Zander said.

RFID, which enables short-range data transfer, is one area where Symbol has a particularly strong patent position and Zander says Motorola can build on the technology. "When you say RFID most people think of tags but I think way bigger about how you can track assets inside the walls, outside the walls and so on," he said. He envisions combining cellular, Wi-Fi, WiMax and RFID in a way that can help enterprises track products throughout their life cycles.

Motorola is also imagining tapping into Symbol's customer base. "They have a customer list I'd die for," said Zander. "We can go in with some of our carrier partners and pitch a total mobility solution across the enterprise."

Symbol has a strong presence in the retail, wholesale, travel, manufacturing and health-care sectors while Motorola is traditionally strong in government, utilities and transportation.

While Symbol's products have a broad customer base the company has faced hurdles in the past few years. In 2004, the U.S. Securities and Exchange Commission fined Symbol $37 million for fraudulent accounting practices. Eleven executives were charged with securities fraud including the former chief

executive, who subsequently fled the U.S.

Rumors had surfaced over the past few days that Symbol was looking for a buyer.

The deal is expected to close later this year or early in 2007, subject to regulatory and other approvals. Symbol will become a Motorola subsidiary and continue to operate from its headquarters in Holtsville, New York. Symbol has 5,000 employees and has deployed 45,000 wireless local area networks and sold 7 million mobile devices, Motorola said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MotorolaacquisitionsSymbol

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments