Silver Lake will make a $1 billion investment in Motorola Solutions, a provider of mission-critical communications solutions for public safety and commercial customers.
The company did not share the specific equity stake of Silver Lake in Motorola Solutions.
Motorola Solutions aims to utilize the Silver Lake investment to accelerate growth in its smart public safety solutions and services businesses through new partnerships, investments and acquisitions. Motorola Solutions said its sales fell 2 percent to $1.4 billion.
Greg Brown, chairman and CEO of Motorola Solutions, said: “This investment combine Silver Lake’s expertise in technology products, services and information solutions with our vision to create safer communities and more successful businesses.”
Motorola Solutions serves more than 100,000 customers in 100 countries, including local, state and national public safety agencies as well as businesses in industries such as utilities, mining and transportation.
As part of Silver Lake’s $1 billion investment, Egon Durban and Greg Mondre, managing partners of Silver Lake, will be appointed to Motorola Solutions’ board of directors. The transaction is expected to close in the third quarter of 2015.
Meanwhile, Motorola Solutions said its sales fell 2 percent to $1.4 billion. North America sales grew 5 percent, driven primarily by Product segment sales. Overall product sales declined 2 percent due to currency headwinds and weakness in Europe and Africa and Latin America, while Services revenue declined 1 percent due to unfavorable currency impact and lower iDEN revenue.
Motorola Solutions expects revenue decline of 1 to 3 percent in the third quarter of 2015. Revenue outlook remains unchanged as revenue is expected to be flat to down 2 percent in 2015.
Shilpa Khatri
[email protected]
