Silver Lake to invest $1b in Motorola Solutions
Motorola Solutions Inc said private equity firm Silver Lake would invest $1 billion in the maker of walkie-talkies and radio systems as it looks to boost growth in its services business, which includes video monitoring and data analytics.
Motorola Solutions, whose shares were up 7 percent in premarket trading, also said it planned a $2 billion buyback.
The investment is one of the largest ever by Silver Lake, which led a $24.9 billion deal to take Dell Inc private in 2013.
Silver Lake is buying $1 billion of convertible senior notes due 2020 with an initial conversion price of $68.50 per share, Motorola Solutions said on Wednesday.
The private equity firm will get two seats on the company's board when the deal closes, probably in the third quarter.
Motorola Solutions said it expected the investment to boost its business that includes video monitoring, data analytics and content management aimed at "smart policing". The business accounted for 3 percent of the net sales of the company's services unit in 2014.