Motorola gets $1B cash infusion from Silver Lake

August 06 01:45 2015

Motorola Solutions (MSI) announced on Wednesday that the private equity firm Silver Lake has made a $1 billion investment in the company. The investment from Silver Lake comes as the company that made its name selling radios to police and fire departments tries to accelerate growth in the next generation of smart public safety solutions.AP ZEBRA MOTORLA F FILE USA NV

“Silver Lake has a proven track record of creating value by partnering with leading technology companies around the world,” said Greg Brown, chairman and CEO of Motorola Solutions. “This strategic partnership and investment combine Silver Lake’s expertise in technology products, services and information solutions with our vision to create safer communities and more successful businesses.” The stake is one of the biggest that Silver Lake, which has over $26 billion in investments in technology firms, has made in its 16-year-history. The firm contributed $1.4 billion in a management-led buyout of Dell two years ago.

The Silver Lake investment comes after reports earlier this year that Motorola was unsuccessful in luring private equity firms and some large industrial companies to buy the Schaumburg, Ill.-based company. Motorola was trading up more than 6% to $63.99 in late morning trading.

As part of the deal, Egon Durban and Greg Mondre, managing partners of Silver Lake, will be appointed to Motorola Solutions’ board of directors when the transaction closes, which is expected to occur in the third quarter of 2015. “We believe it is creating a new era in data-rich public safety communications and has significant potential for growth. Its core business is unrivaled in the United States and around the world with a broad and loyal customer base, an outstanding record of reliability, and growing reach and scale driven by technology innovation,” Durban and Mondre said in a joint statement.