Motorola Solutions expands with U.K. software firm acquisition

CHICAGO - Motorola Solutions, Inc. (NYSE: NYSE:MSI), a global leader in communication solutions for public safety and enterprise sectors, has announced the acquisition of 3tc Software, a U.K.-based provider of control room software solutions. The terms of the transaction were not disclosed.

3tc Software specializes in computer-aided dispatch (CAD) software that aids 999 call-takers in documenting critical information and dispatching emergency responders quickly and efficiently. This software is known for its capability to consolidate essential data onto a single screen, enhancing the speed and effectiveness of emergency response in high-pressure situations.

Mahesh Saptharishi, executive vice president and chief technology officer at Motorola Solutions, emphasized the significance of CAD software in emergency situations, stating that every second counts. He noted that the acquisition broadens Motorola Solutions' Command Center portfolio by adding a solution tailored for Fire and Rescue Services.

The relationship between the two companies extends over five years, during which Motorola Solutions has been a reseller of 3tc Software's CAD solution in the U.K. This acquisition is seen as a move to further integrate their combined expertise in advancing CAD for U.K.'s public safety agencies.

David Todd, CEO of 3tc Software, expressed enthusiasm about joining Motorola Solutions, highlighting a shared commitment to developing solutions that streamline emergency service workflows.

Motorola Solutions, with a longstanding reputation for building technologies that support public safety collaboration, continues to focus on creating safer communities through advanced security solutions. The acquisition of 3tc Software is aligned with this mission, as it seeks to enhance the services provided to emergency services customers.

This news is based on a press release statement, and the information provided is intended to offer an unbiased account of Motorola Solutions' recent acquisition. The company's forward-looking statements indicate its plans to integrate 3tc Software's products and services into its offerings, although no assurances can be made regarding the future results of this action.

In other recent news, Motorola Solutions has reported significant financial growth with a 15% increase in its products and systems integration revenue, a 56% surge in operating earnings, and earnings per share growth of 22%. The company generated $180 million in operating cash flow and ended the quarter with a $14 billion backlog. Full-year revenue growth is projected at around 8%, with non-GAAP EPS forecasted between $13.22 and $13.30.

Motorola Solutions declared a regular quarterly dividend of 98 cents per share, emphasizing its commitment to shareholder value. The company also expanded its board of directors with the appointment of Elizabeth Mann, CFO of Verisk Analytics (NASDAQ:VRSK), whose experience is expected to bring valuable insights.

Evercore ISI maintained its Outperform rating and a $500 price target for Motorola Solutions, while Jefferies also maintained a Buy rating and increased the price target to $510. Both firms highlighted the company's growth opportunities in Land Mobile Radio services. Motorola Solutions has invested over $250 million in acquisitions and plans to allocate approximately $850 million to R&D in 2023.

Motorola Solutions has announced changes to its executive compensation, including a significant increase in the target annual long-term incentive for its CEO, Gregory Q. Brown. The company also approved a special retention grant for three senior executive leaders to incentivize and retain the company's top operational leadership. These changes reflect the company's strategic investments and commitment to executing its long-term strategy.

InvestingPro Insights

Motorola Solutions' acquisition of 3tc Software aligns well with its strong market position and financial performance. According to InvestingPro data, the company boasts a market capitalization of $75.73 billion USD, reflecting its significant presence in the communications equipment industry.

The acquisition strategy appears to be paying off, as Motorola Solutions has shown impressive revenue growth. InvestingPro data reveals a 7.94% revenue growth over the last twelve months, with quarterly revenue growth in Q2 2024 reaching 9.36%. This growth trajectory supports the company's expansion efforts in the emergency services software market.

InvestingPro Tips highlight Motorola Solutions' financial strength and market performance. The company has raised its dividend for 13 consecutive years, demonstrating a commitment to shareholder returns. Additionally, Motorola Solutions has seen a high return over the last year, with a one-year price total return of 53.22% as of the latest data.

The acquisition of 3tc Software may contribute to Motorola Solutions' already strong profitability. The company's operating income margin stands at 26.22% for the last twelve months, indicating efficient operations and potential for integrating new acquisitions effectively.

Investors should note that Motorola Solutions is trading near its 52-week high, with its current price at 94.51% of the 52-week high. This suggests strong market confidence in the company's strategy and future prospects.

For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Motorola Solutions, providing a comprehensive view of the company's financial health and market position.

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