Motorola Solutions (MSI) to Acquire Airwave in GBP817.5M Deal

Motorola Solutions (NYSE: MSI) and Airwave today announced that they have entered into an agreement for Motorola Solutions to acquire Airwave for £817.5 million (approximately $1.2 billion). Motorola Solutions expects its net cash payment to be approximately £700 million (approximately $1 billion) at closing, based on purchase price adjustments and cash in the business. In addition, a deferred cash payment of £64 million will be made in November 2018. The agreement is subject to required approvals and other customary closing conditions, and is expected to close in the first quarter of 2016.

Airwave is the largest private operator of a public safety network in the world, delivering mission-critical voice and data communications to more than 300 emergency and public service agencies in Great Britain. Based on Terrestrial Trunked Radio (TETRA) technology provided by Motorola Solutions, its network covers 99 percent of Great Britain’s landmass, is resilient and enables more than 300,000 police, fire, ambulance and other emergency personnel to easily and securely communicate with each other.

Motorola Solutions currently plans to fund the transaction with bank financing and cash on hand, predominantly from international funds. Upon closing, the company expects the transaction to be immediately accretive to non-GAAP earnings and free cash flow.

“The Airwave acquisition demonstrates our commitment to public safety in Great Britain and to growing our Managed & Support Services business,” said Greg Brown, chairman and CEO of Motorola Solutions. “The combination of our years of experience as a trusted global leader in mission-critical communications and Airwave’s proven service delivery platform will provide Great Britain with innovative emergency services technology that enhances public safety today and into the future.”

Motorola Solutions has been a trusted, reliable communications partner to the emergency services community in Great Britain for more than 45 years. The Airwave Network operates on the company’s TETRA technology.

“Airwave has proven expertise in delivering mission-critical voice and data communications services, and over the past 15 years we’ve invested significantly in the development of a secure, resilient and interoperable network,” said Richard Bobbett, chief executive officer of Airwave. “We are delighted that through this new relationship with global leader Motorola Solutions, we are able to enhance our offering and ensure our customers continue to benefit from the high-quality service they have come to expect.”

Motorola Solutions delivers, manages and operates large-scale and complex public safety networks throughout the world. It currently operates more than 20 systems in countries such as Norway, Denmark, Austria, Australia and the United States.

Formed in 2000, Airwave is headquartered in Berkshire, England, with approximately 600 employees. The company is owned by investment fund Macquarie European Infrastructure Fund 2, which is supportive of the transaction.

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