Seeking Alpha

Motorola Solutions reportedly exploring sale of enterprise Wi-Fi unit

Reuters reports Motorola Solutions (MSI +0.1%) is thinking of selling its slumping enterprise Wi-Fi unit. One source cautions talks are in their early stages.

Motorola's Wi-Fi division sales fell by a mid-single digit % Y/Y in Q2, and by 30% in Q1. By contrast, IDC estimates global enterprise Wi-Fi sales rose 14.8% during the quarter.

Potential buyers include rivals Aruba (ARUN +1%), Ruckus (RKUS +0.1%), and Ubiquiti (UBNT +3%). Market leader Cisco could also make a bid, but with the company already having an estimated 58.4% Q2 share (per IDC), regulators might not be thrilled. Also, Cisco is in the midst of integrating Wi-Fi hardware/software vendor Meraki, which it bought for $1.2B.

Motorola's total enterprise sales fell 12% Y/Y in Q2, if one excludes the impact of the Psion acquisition; the Wi-Fi unit accounted for 8% of 2012 enterprise sales, or $216.7M. Q3 results arrive on Wednesday.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs