Zebra Technologies CorporationNASDAQ
Oct. 27, 2014, 3:52 PM
- Zebra's (ZBRA +0.6%) $3.45B acquisition of Motorola Solutions' (MSI +0.4%) enterprise hardware unit is on the books. As previously announced, Zebra financed the deal using $200M in existing cash and $3.25B in debt.
- The deal gives Zebra a business with 2013 sales of $2.5B (more than 2x Zebra's 2013 revenue). However, the Motorola unit's sales fell 8% Y/Y in Q2 to $560M, something Motorola blamed on "supply chain and IT execution issues related to transitioning business processes as well as weaker demand in Asia."
- Motorola plans to "discuss its capital return plan" during its Nov. 4 Q3 report and CC. Zebra reports on the same day.
Apr. 15, 2014, 2:26 PM
- Zebra Technologies (ZBRA -11.1%) aren't thrilled with the company's plans to spend $3.45B in cash to buy Motorola Solutions' (MSI -1.3%) enterprise hardware/software unit. (FT report)
- Zebra, which had only $416M in cash/investments at the end of 2013, says it will pay with $200M in cash on hand and $3.25B in new debt. Zebra's current market cap only stands at $3.05B. The deal is expected to close by year's end.
- Motorola's enterprise unit offers barcode scanners and RFID readers that complement Zebra's inventory/location-tracking and specialized printing products. It also sells Wi-Fi hardware, interactive kiosks, handheld computers, and two-way radios.
- The unit had 2013 pro forma sales of $2.5B, easily surpassing Zebra's 2013 sales of $1B. But it has been struggling: Sales were down 2% in 2013, and op. income fell 9% to $358M.
- Along with the deal, Motorola has announced it expects to report Q1 revenue of $1.8B (-9% Y/Y) and EPS of $0.50, below a consensus of $1.88B and $0.51. 2014 revenue is now expected to fall by a single-digit %; the consensus is for a 0.7% increase.
- Excluding acquisition expenses, Zebra expects to report Q1 revenue of $287M-$289M and EPS of $0.88-$0.91, above a consensus of $281.6M and $0.83.
Dec. 19, 2013, 3:03 PM
- Zebra Technologies (ZBRA +0.9%) acquires cloud-based inventory management solutions provider Hart Systems for $94M in cash from Topspin Partners.
- The transaction is expected to be immediately accretive to earnings.