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Motorola to shed embedded computing unit for $350M

Fri, 09/28/2007 - 9:09am
Mike Robuck

Motorola will sell its Embedded Communications Computing business to Emerson Electric Co. for $350 million.

Schaumburg, Ill.-based Motorola expects to finalize the sale by the end of this year after it gains customary closing conditions and regulatory approvals.

Motorola's ECC business, which had 2006 revenue of approximately $520 million, will strengthen Emerson's position in the $6 billion-and-growing merchant embedded computing industry. Upon completion of the transaction, Motorola's ECC business, which has 1,100 employees, will become part of Emerson Network Power.

The primary purpose of embedded computing technology is to control machines or other computer systems and manipulate data. Based in Tempe, Ariz., Motorola’s ECC business provides embedded computing products and services to communication infrastructure and equipment manufacturers in telecommunications, medical imaging, defense and aerospace and industrial automation.

Motorola said the transaction will help it sharpen its focus on the company’s core businesses and technologies, as well as provide additional capital.

"We regularly evaluate our company's portfolio to ensure alignment with our core vision and business strategies to enhance shareholder value,” said Ed Zander, chairman and chief executive officer, Motorola, in a statement. “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."

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