Motorola announced plants to split into two independent, publicly traded in the first quarter of 2011.
One will include the company’s Mobile Devices and Home businesses, and the other will include its Enterprise Mobility Solutions and Networks businesses.
Motorola’s Mobile Devices and Home businesses will offer a portfolio of mobile converged devices, digital entertainment devices in the home, and end-to-end video, voice and data solutions. Working with network operator partners, the company will also enable more advanced personalized services that leverage the capability of expanding wireless and wireline broadband availability. Dr. Sanjay Jha, co-chief executive officer of Motorola, will serve as chief executive officer of this half effective immediately.
Motorola’s Enterprise Mobility Solutions and Networks businesses will offer a portfolio of products and solutions, including rugged two-way radios, mobile computers, secure public safety systems, scanning, RFID, and wireless network infrastructure. Greg Brown, co-chief executive officer of Motorola, Inc., will serve as chief executive officer of this group.
Following the separation event both entities will use the Motorola brand. The Mobile Devices and Home business is expected to own the Motorola brand and license it royalty free to the Enterprise Mobility Solutions and Networks business. Additional details regarding brand, capital structure and which entity will be distributed will be provided in the future as we progress with our plans.
Motorola intends to effect the separation through a tax-free stock dividend of shares in the new company to Motorola shareholders. Following the separation both businesses will be well capitalized so the companies can execute their respective business plans and be able to address future opportunities.
Motorola expects that, post-separation, the Enterprise Mobility and Networks business will be capitalized in a manner that will achieve an investment grade rating and will be the entity responsible for Motorola’s existing public market debt at the time of separation.
http://www.motorola.com
