(By Balaseshan) Motorola Solutions Inc. (NYSE:MSI), a provider of mission-critical communication solutions, is strengthening its mobile-computing portfolio with the deal to buy London-based Psion Plc for $200 million in cash effected by way of a recommended cash offer.
Motorola agreed to pay for each Psion share $1.36 (88 pence per share), representing a premium of 45% on the Psion closing price of 60.5 pence on June 14. The acquisition is expected to close in the fourth quarter of 2012.
Motorola anticipates to realize cost and revenue synergies resulting in margin expansion opportunities and expects the transaction to be accretive to earnings per share on a non-U.S. GAAP basis in the first full year following completion and on a U.S. GAAP basis in the second full year following completion.
Upon completion of the acquisition, Motorola Solutions will combine Psion within Motorola Solutions' Enterprise Mobile Computing (EMC) business, reporting to Girish Rishi, corporate vice president, EMC.
Motorola Chief Executive Greg Brown said Psion is a compelling opportunity to strengthen the company's industry-leading, mobile-computing portfolio with ruggedized handheld products and vehicle-mount terminals that will deepen its presence in the global markets.
Psion has about 830 employees, customers in more than 50 countries and delivered 2011 revenues of 176 million pounds (about $273 million).
Goldman Sachs is serving as Motorola Solutions' financial adviser and Clifford Chance is serving as Motorola Solutions' legal counsel in relation to the transaction. Canaccord Genuity Hawkpoint Limited is serving as financial adviser to Psion and Slaughter and May is serving as legal counsel to Psion in relation to the transaction.
MSI is trading up 1.48% at $48.05 on Friday. The stock has been trading between $38.36 and $52.78 for the past 52 weeks.