Motorola to split into two separate companies in 2011

12 Feb 2010

Motorola plans to split into two independent, publicly-controlled companies during the first quarter of 2011.

One company will include the company’s Mobile Devices and Home businesses, while the other will include its Enterprise Mobility Solutions and Networks businesses. 

Motorola intends to effect the separation through a tax-free stock dividend of shares in the new company to Motorola shareholders. 

Following the separation, it is expected that both businesses will be well capitalised so the companies can execute their respective business plans and be able to address future opportunities. 

“The board of directors supports the planned separation of Motorola into two industry-leading public companies,” said David Dorman, chairman of Motorola’s board of directors.

 “We believe this structure provides significant operational and strategic flexibility for both companies, positions them for future success, and enhances long-term shareholder value.” 

Motorola’s Mobile Devices and Home company’s CEO

Dr Sanjay Jha, co-chief executive officer of Motorola Inc, will serve as chief executive officer of the Mobile Devices and Home company, effective immediately. 

This business will offer a portfolio of mobile converged devices, digital entertainment devices in the home, and end-to-end video, voice and data solutions. 

“The combination of Mobile Devices and our Home business brings together two highly complementary and innovative organisations. Together we will be best positioned to lead in the convergence of mobility, media, and the internet.  Our expanding portfolio of smart phones and end-to-end video content delivery capabilities will enable us to provide advanced mobile media solutions and multi-screen experiences for our customers,” Jha said.

Meanwhile, the co-chief executive officer of Motorola Greg Brown will serve as the CEO of the Enterprise Mobility Solutions and Networks businesses, effective immediately.

This business will offer a comprehensive end-to-end portfolio of products and solutions, including two-way radios, mobile computers, public safety systems, scanning, RFID and wireless network infrastructure.

“We are the leading mission-and business-critical technology solutions provider with a commitment to innovation. As an independent company, we will continue to build on our long-standing tradition of strong customer relationships, leading-edge product development, quality, thought leadership and solid financial performance,” Brown said.

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