Motorola Solutions Close to $4.5 Billion Deal to Buy Silvus

Motorola Solutions Inc. (NYSE:MSI) is reportedly in advanced discussions to acquire Silvus Technologies, a privately held wireless radio manufacturer, in a deal valued at approximately $4.5 billion, according to sources familiar with the matter.

An official announcement could come within the next few weeks, though sources noted that no final agreement has been made and the talks could still fall through. Both Motorola and Silvus’s owner, private equity firm TJC (formerly The Jordan Co.), declined to comment.

Motorola Solutions Inc. (NYSE:MSI) is an American multinational company that is known for its work in communications, video security, and public safety software. The company has a history of acquisitions, though typically smaller in size. If completed, the Silvus deal would mark Motorola’s second-largest acquisition ever, behind only its $9.5 billion purchase of Arris Technology in 1999, according to data by Bloomberg. The data shows Motorola has made about 40 acquisitions over the past decade, with only two exceeding $1 billion.

Silvus specializes in developing wireless communication systems used in demanding environments, serving military and law enforcement clients.

According to Evercore ISI, the acquisition would help strengthen Motorola’s presence in the defense sector. Analyst Amit Daryanani made the following statement in a note to clients:

“Strategically, we think acquiring Silvus would further firm up MSI’s already dominant position in the [land mobile radio] market. The potential target’s Mobile Networked MIMO (MN-MIMO) technologies could enhance MSI’s [land mobile radio] portfolio harsh/environment/mission-critical capabilities as well. This could further expand their presence with DoD centric projects, given Silvus’s StreamCaster solutions that are used extensively for [unmanned systems].”

Daryanani maintained his Outperform rating on MSI with a $500 price target. The stock has surged by over 15% in the past 12 months.

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