Symbol Technologies, a company that specializes in barcode
scanners, wireless and radio frequency identification (RFID) equipment, has been
bought by Motorola.
The second-biggest mobile phone manufacturer in the world
bought Symbol's outstanding shares on Tuesday, closing a deal worth approximately US$3.9 billion in total.
"This transaction significantly advances Motorola's
enterprise mobility strategy and is consistent with our focus on building on our
already strong intellectual property portfolio and extending Motorola's seamless
mobility leadership," said Motorola's chairman, Ed Zander, on Tuesday.
Symbol had been approached several times by Motorola,
according to Symbol's EMEA marketing manager, Marco Landi, who denied press
reports that Symbol had actively put itself up for auction.
"Motorola established their Enterprise division a couple of
years ago, and had since been investigating potential acquisitions to deepen
that side of their business," Landi told ZDNet UK on Tuesday, adding: "The last
approach was this spring and there have been discussions on and off since
Landi explained that, because Symbol Technologies is
significantly larger than Motorola's Enterprise division, it would in effect
take the division over.
"The businesses are extremely complimentary," said Landi.
"We think they will keep everything. We will bring to them all our coverage in
terms of market, retail, manufacturing, transport and logistics, and they will
help us with [their governmental expertise]. We will bring them all of our
mobile computing technology which they lack, our wireless and switch technology, RFID and scanning."
Symbol has an extensive portfolio of wireless LAN equipment,
which Landi claimed would benefit from the Motorola brand. "It will give us a
stronger brand to compete with Cisco," he explained, adding: "The new Motorola
Enterprise will probably become an even bigger leader in the market and a big
competitor for the likes of Nokia, who are trying to penetrate enterprise
Landi denied that the merger would result in any job losses.
It is expected that the transaction will be completed within the next two to three months.