Motorola gets $350M for its embedded communications division from Emerson Electric

29 September 2007

Schaumburg: Telecom major Motorola has announced that it will sell its embedded communications business to Emerson Electric at a price of $350 million.

The division has about 1,100 employees, and had recorded revenues of about $520 million in 2006.

Embedded computing technology is mainly used to control machines or other computer systems, and to manipulate data.

Motorola said the deal bolsters St. Louis-based Emerson''s position in the $6 billion merchant embedded computing industry, while simultaneously sharpens focus on its core cell phone businesses for Motorola, in addition to providing additional capital to propel growth and enhance shareholder value.

Upon completion of the transaction, Motorola''s ECC business will become part of Emerson Network Power, and the transaction is scheduled for completion by the end of the calendar year, subject to customary closing conditions and regulatory approvals.

Based in Tempe, Arizona, Motorola''s ECC business has driven open standards and pioneered technologies based upon them since its formation in 1980. It is a leading provider of embedded computing products and services to communication infrastructure and equipment manufacturers in telecommunications, medical imaging, defence and aerospace and industrial automation.