Sil­ver Lake to in­vest $1b in Mo­torola So­lu­tions

The Pak Banker - - COMPANIES/BOSS -

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.

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