Motorola Solutions has completed its acquisition of UK public safety network operator Airwave from Australian bank Macquarie with a cash payment of about £700m (US$1bn). A deferred cash payment of £64m (US$90m) is set to be made in November 2018.
Motorola Solutions (NYSE:MSI) has completed its acquisition of UK public safety network operator Airwave from Australian bank Macquarie (ASX:MQG) with a cash payment of about £700m (US$1bn).
The US-based telecoms equipment provider said in a statement that a deferred cash payment of £64m (US$90m) will be made in November 2018.
Motorola Solutions chairman and CEO Greg Brown said the acquisition of Berkshire-based Airwave, which provides voice and data communications to some 300 emergency and public service agencies in the UK, will enable the company to “significantly grow our managed and support services business”.
“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,” he added.
Schaumburg, Illinois-based Motorola expects the acquisition will be immediately accretive to its non-GAAP earnings and free cash flow. The company plans to incorporate Airwave into its 2016 financial outlook.
Last December, the UK Home Office selected mobile operator EE over Airwave to serve as its mobile services partner for emergency services. Motorola, for its part, was chosen as the department’s user services partner, meaning it will provide end-to-end systems integration, manage user accounts and services such as public safety functionality.
Two Macquarie-managed infrastructure funds acquired Airwave from Telefónica for £1.9bn in April 2007.
Macquarie was reportedly advised by Lazard on the deal.