Motorola Solutions to buy Silvus Technologies for $4.4 billion

CHICAGO - Motorola Solutions, Inc. (NYSE:MSI), a global leader in communication solutions with a market capitalization of $70.1 billion and strong financial health rating according to InvestingPro, has agreed to acquire Silvus Technologies, Inc., a software-defined mobile ad-hoc network (MANET) technology company, for $4.4 billion. The company, which has maintained dividend payments for 15 consecutive years, currently generates annual revenue of nearly $11 billion with a healthy 7.5% growth rate. The acquisition, announced today, is expected to enhance Motorola’s offerings in safety, security, and defense communications.

Silvus, headquartered in Los Angeles, specializes in creating secure, high-speed MANET solutions for data, video, and voice communications without fixed infrastructure. Their technology is utilized by various sectors, including autonomous systems manufacturers, military, law enforcement, and enterprises worldwide. Silvus’s mesh networks are scalable, self-healing, and designed to function in challenging environments, supporting technologies like video and drones.

Motorola Solutions Chairman and CEO Greg Brown emphasized the acquisition’s alignment with the company’s mission to protect communities through technology. "This acquisition underscores our unwavering conviction that technology is the bedrock for protecting communities," Brown said.

The agreement includes an up-front consideration of approximately $4.38 billion in cash and around $20 million in restricted stock to certain Silvus employee equity holders. Additionally, Silvus may receive an earnout of up to $600 million based on performance through 2027 and 2028. Based on InvestingPro analysis, Motorola Solutions currently trades above its Fair Value, with 11 analysts recently revising their earnings expectations downward for the upcoming period. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Silvus’s CEO, Babak Daneshrad, expressed enthusiasm about joining forces with Motorola Solutions, citing a shared commitment to safety and innovation. The combined engineering teams are expected to leverage Motorola Solutions’ market presence to serve global customers.

The transaction is subject to regulatory approvals and is anticipated to close in the second half of 2025. Further details on the acquisition can be found in the investor presentation on Motorola Solutions’ Investor Relations website, with a conference call scheduled for May 28, 2025, at 7:30 a.m. CST. The company maintains a moderate debt level with a current ratio of 1.2, suggesting solid financial stability for executing this strategic acquisition.

This acquisition marks a strategic expansion for Motorola Solutions, known for its commitment to innovating for safer futures through technology that supports public safety agencies and enterprises. The information in this article is based on a press release statement.

In other recent news, Motorola Solutions Inc. reported impressive first-quarter 2025 earnings, surpassing analysts’ expectations with a non-GAAP earnings per share (EPS) of $3.18, higher than the anticipated $3.01. The company also exceeded revenue forecasts, posting $2.53 billion compared to the expected $2.52 billion. Despite these positive results, Motorola’s stock experienced a decline in aftermarket trading. In another development, Motorola Solutions is in advanced talks to acquire Silvus Technologies for approximately $4.5 billion, a move that could significantly enhance its capabilities in the drone-as-a-first-responder sector. The acquisition, if completed, would be one of the largest in Motorola’s history, following its $9.5 billion purchase of Arris Technology in 1999. Furthermore, the company has declared a regular quarterly dividend of $1.09 per share, continuing its tradition of returning value to shareholders. William Blair has maintained an Outperform rating for Motorola, highlighting the strategic benefits of the potential Silvus acquisition. These recent developments underscore Motorola’s ongoing commitment to innovation and expansion in the communication technology space.

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