Motorola Solutions to buy Psion for about $200 million
ASSOCIATED PRESS June 15, 2012 4:22PM
Motorola Solutions Inc., which sells communications equipment to government and corporate customers, said Friday that it is buying Psion PLC for about $200 million in cash.
London-based Psion makes mobile computing products for industrial markets, and has customers in more than 50 countries. Motorola Solutions said the addition of Psion will boost its mobile-computing portfolio and deepen its presence in its current global markets.
Under the terms of the agreement, Motorola Solutions will pay 88 pence ($1.36) for each Psion share. The offer represents a premium of about 45 percent over Psion’s closing stock price of 60.5 pence Thursday on the London Stock Exchange.
The news sent Psion’s shares up 45 percent to 87.75 pence in afternoon trading in London.
Psion has a major operational presence near Toronto and employs about 830 people. It posted 2011 revenue of 176 million pounds ($273 million).
The acquisition is expected to cut Motorola Solutions’ overall costs and boost its margins, resulting in higher earnings per share on a non-U.S. basis in the first full year after closing and on a U.S. basis in the second full year.
The deal, which is expected to close in the fourth quarter, is contingent on getting 90 percent of Psion’s shares tendered, regulatory approval and other customary closing conditions, Motorola Solutions said.
Shares of Motorola Solutions rose 67 cents to $48.02 in late morning trading. They are still down 9 percent from their 52-week high of $52.78 in early March.