Motorola Solutions (NYSE:MSI) Looking For A Sell-Out Option


Bloomberg recently reported that Motorola (NYSE:MSI) is looking for a potential sell out. The company is the maker of cell phones, walkie-talkies and radio equipment and had decided to explore this option for its revenues and earnings were going low for quite a while now. Motorola is an 87 year old firm, and according to the reports of Bloomberg, the potential buyers include defense contractors as well as private entities. These firms include General Dynamics (NYSE:GD), Raytheon (NYSE:RTN) and Honeywell (NYSE:HON).

Motorola (NYSE:MSI) is in contact with some of its advisors in order to look for a buyer. According to some sources familiar with the matter, the company had been looking for some buyers for quite a while now. Chances are that Motorola (NYSE:MSI) will be sealing the deal in the latter part of the year 2015. Motorola (NYSE:MSI) was formed when Motorola separated from its mobile division back in 2011 due to huge pressure from Carl Icahn, an activist investor of the company.

Motorola (NYSE:MSI) has a market cap of $15.6 billion only. The production segment of Motorola was later on given the name of Motorola Mobility Holdings, however, the unit divested just a few months later. Google (NASDAQ:GOOG) bought the unit for a total of $12.4 billion. It was with the sale of its phone unit to Google (NASDAQ:GOOG) that the company ended its future. It is important to mention here that Motorola (NYSE:MSI) was the first company that introduced the concept of mobile phone back in 1980s.

Google (NASDAQ:GOOG) sold this phone unit to Lenovo Group, a PC maker company located in China. According to some sources, Raytheon is planning to expand its business, and for that matter, Motorola (NYSE:MSI) can be a great deal. Raytheon acquired a surveillance and a cyber-security company back in 2014 for a total of $420 million in order to improve its intelligence segment. Dave Wajsgras, the chief financial officer of the company, recently mentioned to the media that the company will be expanding its cyber business together with the electronic warfare.

The CFO further announced that the company wants to make acquisitions related to technology so as to build its market. According to some analyst companies, Raytheon may be a potential buyer for Motorola (NYSE:MSI). Motorola Solutions (NYSE:MSI) manufactures radio devices for emergency purposes. That said, the company also covers a whole array of products, and hence, it can prove to be quite beneficial for Raytheon. The non-GAAP earnings of Motorola declined by 33 percent on yearly basis for the year 2014.

The revenues also fell down by 6 percent. As for the year 2015, the company expects its revenues to stay flat at -2 percent. On the last trading day of February 08, 2015, the company closed its stocks at 1.03 percent and reached $64.66. The stocks gained 6.75 percent when the news of Motorola’s (NYSE:MSI) potential sell out hit the market. The shares hit the figures of $70 in the high hour.

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