SAN FRANCISCO and SCHAUMBURG, Ill., Aug. 23, 2011 — Vector Capital and Motorola Solutions, Inc. (NYSE: MSI) today announced that they have reached an agreement under which Vector Capital will acquire Motorola Solutions’ Point-to-Point (PTP or Orthogon) and Point-to-Multipoint (PMP or Canopy) Wireless Broadband Networks businesses for an undisclosed amount. The transaction is expected to be completed as early as the end of September and is subject to customary closing conditions.
The Motorola PTP and PMP businesses are leaders in the wireless broadband industry. They are renowned for their extensive portfolios of unlicensed and licensed solutions that address key industry verticals, as well as a strong technology base that supports the broadest range of applications of any business in their market segments. With extensive technical expertise and experience, high reliability, superior quality control, and unparalleled customer support, these businesses are well positioned for the future.
Vector Capital, a private equity firm, intends to operate the businesses as a single standalone company called Cambium Networks that will be well-funded and positioned to benefit from a more tailored focus and agile organizational structure. Motorola Solutions plans to continue to purchase products from Cambium Networks to meet the broadband needs of its key direct public safety and federal accounts.
“We look forward to working with Motorola Solutions to spinout Cambium Networks," said Alex Slusky, managing partner at Vector Capital. “Vector has deep experience restoring focus and accelerating growth at non-core divisions of the largest global technology companies. We will enable the Cambium management team to build the leading independent provider of PTP and PMP solutions. We are committed to taking great care of customers and creating future opportunities for the employees of the new Cambium Networks."
“We are pleased to have reached this agreement, which will further streamline the Motorola Solutions portfolio and position PTP and PMP for even greater success,” said Greg Brown, chairman and CEO, Motorola Solutions. “Vector Capital has a strong track record in growing technology businesses, and we believe its continued targeted investment and oversight will best position these industry-leading brands to serve their distinct customer bases.”
Phil Bolt, vice president, Wireless Network Solutions, for Motorola Solutions, will serve as CEO of Cambium Networks. Bolt has extensive experience in the wireless broadband industry. To ensure a seamless transition and continuity of service, PTP and PMP senior management, sales, supply chain, technical support, product management, marketing, and research and development teams will transfer to Cambium Networks.
“The launch of the Motorola Solutions’ Canopy and Orthogon business units as Cambium Networks will create an exciting and significant growth opportunity for both Cambium Networks and our partners,” Bolt said. “Our partners will continue to receive the innovative products, quality and support for which we are renowned, only now with the advantage of increased focus and flexibility.”
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About Vector Capital
With over $2 billion of capital, Vector Capital is a leading global private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets. Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders. Among Vector's notable investments are Aladdin Knowledge Systems, Certara, Corel, LANDesk, Precise Software Solutions, Printronix, RAE Systems, Register.com, SafeNet, Savi Technology, Trafficmaster, WatchGuard Technologies, and WinZip. For more information, visit www.vectorcapital.com.
About Motorola Solutions
Motorola Solutions is a leading provider of mission-critical communication solutions and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.” To learn more, visit www.motorolasolutions.com
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Notes To Editors
This press release contains “forward-looking statements” within the meaning of applicable federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include word such as "believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and include, but are not limited to: (1) the satisfaction of the conditions to closing, including the absence of a material adverse effect on the business being sold by Motorola Solutions under the proposed transaction; (2) the parties having the ability to consummate the transaction; and (3) the expected timeline for completing the transaction. A detailed description of other risks and uncertainties affecting Motorola Solutions is contained in Item 1A of the 2010 Annual Report of Motorola Solutions on Form 10-K and in its other filings with the Securities and Exchange Commission (“SEC”). These filings are available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
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