Motorola Takes 78-Percent Stake in Vertex Standard (1/16)
Wednesday, January 16, 2008 | Comments

Motorola completed its tender offer to acquire a controlling interest in two-way radio provider Vertex Standard for about $186 million. Motorola tendered about 5.4 million shares for a 78-percent ownership stake, while Tokogiken, a privately held Japanese company controlled by Jun Hasegawa, Vertex Standard's president and chief executive officer (CEO), will retain a 20-percent stake.

Through a subsequent restructuring process, Motorola plans to own 80 percent of Vertex Standard. Motorola launched the tender offer in November in cooperation with Tokogiken to form a joint venture to develop and sell Vertex Standard-branded products and develop select Motorola-branded products. All regulatory clearances for the transaction have been obtained, Motorola officials said.

Executives said the joint venture is expected to expand and develop a suite of products to address the rapidly growing demand for two-way radio solutions. Vertex Standard's strength in the amateur, marine and avionics segments provide Motorola with access to new business opportunities. In addition, Vertex Standard's products are highly complementary with Motorola's products and add greater depth and breadth to Motorola's government and public-safety business. The venture also provides additional engineering talent for Motorola.

Following the restructuring, Vertex Standard will be delisted from the JASDAQ stock exchange. The joint venture company will continue to be called Vertex Standard and will become a subsidiary of Motorola, with headquarters in Tokyo.

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