SCHAUMBURG, Ill.—Motorola Inc. announced its intent to separate its mobile devices and broadband and mobility solutions businesses into two independent, publicly traded companies.
Based on current plans, the creation of the two standalone businesses is expected to take the form of a tax-free distribution to Motorola’s shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent companies.
"Our decision to separate our mobile devices and broadband and mobility solutions businesses follows a review process undertaken by our management team and board of directors, together with independent advisors,” said Greg Brown, Motorola’s president and chief executive officer. "Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus–as well as more targeted investment opportunities for our shareholders.”
Motorola is searching for a new chief executive officer for the mobile devices business, which designs, manufactures and sells mobile handsets and accessories globally with software solutions that incorporate personal communications technologies. It also licenses a portfolio of intellectual property.
The broadband and mobility solutions business includes Motorola’s enterprise mobility, government and public safety and home and networks businesses. These businesses manufacture, design, integrate and service voice and data communication solutions and wireless broadband networks for enterprises and government and public-safety customers worldwide. They also provide digital and internet protocol (IP) video solutions, cellular and high-speed broadband network infrastructure, cable set-top receivers and associated equipment for residential and commercial wireless network system access.
"Our priorities have not changed with today’s announcement,” added Brown. "We remain committed to improving the performance of our Mobile Devices business by delivering compelling products that meet the needs of customers and consumers around the world. As part of that effort, we have undertaken a global search for a new chief executive officer for the mobile devices business.”