Zebra Technologies Acquires Motorola Solutions’ Handheld Division in $3.45B Deal

In a landmark move, Zebra Technologies—a leader in barcode, RFID, and printing solutions—has announced its acquisition of Motorola Solutions’ handheld scanner business for $3.45 billion. The deal, finalized in an all-cash transaction, marks a strategic expansion for Zebra, positioning the company as a dominant force in enterprise mobility and IoT solutions.

A Strategic Partnership Evolves

Philip Gerskovich, Zebra’s Senior Vice President for New Growth Platforms, revealed that the two companies have collaborated for years.

  • Synergy in Solutions: Zebra produced barcodes and RFID tags, while Motorola supplied the scanners to read them.
  • Shared Customer Base: The companies frequently partnered on joint deals, making the acquisition a natural progression.

What Zebra Gains from the Deal

The acquisition grants Zebra:

  • Motorola’s entire handheld scanner business, including patents and intellectual property.
  • 4,500 employees from Motorola’s handheld division.
  • Expanded sales channels and customer relationships.

Why Motorola Sold

Motorola Solutions is refocusing on its government and public safety communications segment, making the handheld unit a non-core asset. Despite Zebra being the smaller company, the deal aligns with Motorola’s long-term strategy.

Challenges and Opportunities Ahead

Gerskovich acknowledged the complexities of merging two large organizations but emphasized their existing synergy as a key advantage.

  • IoT Integration: Zebra’s Zatar cloud platform, combined with Motorola’s smart scanners, creates a robust ecosystem for IoT applications.
  • Rugged Android Devices: Motorola’s scanners are essentially rugged smartphones with scanning capabilities, opening doors for advanced enterprise applications.

Financial Impact and Market Position

The combined entity would have reported $3.5 billion in 2013 sales, a significant leap from Zebra’s standalone revenue of $1 billion. Both companies are headquartered in Illinois, simplifying logistical integration.

Next Steps

The deal, already approved by both boards, awaits regulatory clearance. Zebra anticipates closing the transaction by year-end 2014.

Photo Credit: Zebra Technologies

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