Motorola Purchases 20% of Silver Lake’s Convertible Notes
Thursday, September 06, 2018 | Comments

Motorola Solutions is purchasing 20 percent of Silver Lake’s convertible notes. Silver Lake will retain a position in Motorola Solutions valued at about $1.5 billion.

Egon Durban and Greg Mondre, Silver Lake managing partners and managing directors, will remain on the Motorola Solutions board of directors.

“We are excited to continue our partnership and remain enthusiastic long-term shareholders with Motorola Solutions and its leader Greg Brown,” said Durban and Mondre. “The management team has delivered extraordinary shareholder value driven by a relentless focus on customers, product innovation and operational excellence. We are strong believers in the company’s expansion growth strategy focused on managed services, software and video analytics.”

A Securities and Exchange Commission (SEC) filing said the company agreed with one of the holders to purchase from the holder $200 million in principal amount of the convertible notes for an aggregate consideration of nearly $369 million in cash, inclusive of conversion premium. The company expects to pay the cash consideration for the $200 million principal amount with funds from existing credit facilities and/or funds obtained from new debt financing, and the remainder of the consideration will be paid with cash on the balance sheet. 

Settlement of the purchase is expected to occur by Oct. 17.

“Since making its $1 billion investment in 2015, Silver Lake has been an outstanding partner,” said Greg Brown, chairman and CEO of Motorola Solutions. “I look forward to continuing the relationship with Egon and Greg as we continue to grow the company and drive shareholder returns.”

The Silver Lake Partners portfolio includes technology businesses such as Alibaba Group, Dell Technologies and Unity.

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