Communication Solutions

In a bid to further strengthen their position in the embedded computing industry, Emerson has announced a definitive agreement with Motorola (News - Alert), Inc. to acquire Motorola's Embedded Communications Computing (ECC) business for $350 million in cash.

 

According to a news release, the transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed by the end of the calendar year and will combine Motorola's ECC business with Emerson Network Power (News - Alert).

 

"We believe that Emerson has the proven track record to continue to serve ECC's customers with the same high quality and level of products and services. We have the highest regard for the talented and dedicated ECC employees and are confident they will be a welcome addition to the Emerson team," Ed Zander, chairman and chief executive officer, Motorola, Inc. commented.

 

Motorola's ECC business, which was formed in 1980, and which had approximately $520 million in revenue in 2006, offers products and services to communication infrastructure and equipment manufacturers.

 

With the transaction, Motorola will be able to focus more on its core businesses and technologies.

"The combination of Motorola's ECC business with the $100 million embedded computing business we acquired as part of Artesyn last year establishes Emerson as a leader in the embedded computing industry. Through this transaction, Emerson can provide greater capabilities to our customers as they adopt advanced new technologies and expand applications for their customers," said David N. Farr, chairman, chief executive officer and president, Emerson.