Motorola Solutions announced that Silver Lake will make a US$ 1 billion investment in the company. As per Motorola, this amount will be used to accelerate growth in its smart public safety solutions and services businesses through new partnerships, investments and acquisitions.
Transaction is expected to close in the third quarter of 2015.
Egon Durban and Greg Mondre, managing partners of Silver Lake will join Motorola Solutions’ board when the transaction closes.
Motorola also announced its intent to repurchase up to US$2 billion of stock through a tender offer. Company will be using existing cash and a portion of the proceeds from the US$1 billion investment by Silver Lake to fund the tender offer.
Under the terms of the agreement, Silver Lake is purchasing US$1 billion aggregate principal amount of 2.0 percent convertible senior notes due 2020 with an initial conversion price of US$68.50 per share. The initial conversion price represents a conversion premium of 17.0 percent over the volume-weighted average price of the company’s common stock sale price of $58.55 per share on the New York Stock Exchange during the 30 trading days ended Aug. 4, 2015.
Greg Brown, chairman and CEO of Motorola Solutions said, “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. It represents a strong vote of confidence in our company’s strategy and future growth opportunities.”