In September 19, 2006, the worlds second largest mobile phone manufacturer Motorola announced, will cost $3 billion 900 million acquisition of the United States and a barcode scanner manufacturer Xunbao Technology (Symbol). This is Motorolas largest merger and acquisition since 2000.
It is reported that Motorolas acquisition, is reached after the defeat of IBM, NCR and other competitors, Motorola will share Xunbao technology shares for $fifteen, the price of the company on Fridays closing price of 18%. It is reported that the deal will be completed at the end of this year or early next year. Motorola said that if the acquisition is successfully completed, the "symbol technology" business will increase profits for Motorola in the first year, and it will save about one hundred million dollars by 2008.
Xunbao technology company mainly for the production of various supermarkets, warehouse management industry such as barcode scanners, handheld devices, and RFID tags and equipment. Analysts say the companys technology and products will complement Motorolas competitiveness in the retail, transport and health care markets.
In fiscal year 2005, Xunbao technology company sales revenue of $1 billion 770 million, profit $32 million 200 thousand, or 13 cents per share. Wall Street analysts predict that the company will earn about $1 billion 800 million this year, with a profit of about 45 cents a share.
Analysts have different views on Motorolas merger. Harris, an analyst at Oppenheimer, an American investment consultancy, said Motorolas share in the mobile device market will double by this acquisition and get profit opportunities. Therefore, Wall Street should welcome this acquisition. However, other people worry that business will disperse Motorola Xunbao technology companys attention. It is reported that in 2000, Motorola spent $17 billion acquisition of the set-top box manufacturers General Instrument Corp, the largest acquisition since the acquisition in 2000 is Xunbao technology.
Recently, Motorola has just reorganized its internal business department, where the network equipment business is merged with the business department, and the new Department is responsible for selling communication devices to large company users. Huffman Cowende analyst America investment consulting company said that this acquisition technology Xunbao apparently breaking Motorola said earlier will only purchase the small and medium-sized enterprise position, so the new business will disperse Xunbao technology network and the corporate sectors attention.