Motorola to Acquire MeshNetworks
Purchase Will Extend Broadband Wireless Technology Portfolio
SCHAUMBURG, Ill., Nov. 16 /PRNewswire-FirstCall/ -- Motorola (NYSE: MOT) today announced that it has signed a definitive agreement to acquire MeshNetworks, Inc., a privately-held, leading developer of mobile mesh networking and position location technologies that allow customers to deploy high performance Internet Protocol (IP)-based wireless broadband networks.
Terms of the transaction were not disclosed. The acquisition, which is subject to customary conditions and approvals, is expected to close in the fourth quarter of 2004.
With this acquisition, Motorola will provide its customers a broader solutions portfolio to build scalable broadband wireless networks capable of delivering next generation content including data, video, location and voice over IP (VoIP) services.
"This acquisition will provide Motorola with technologies that will have a significant benefit for customers across all of our businesses ranging from mission critical and enterprise markets to automotive and home entertainment applications," said Greg Brown, president of Motorola's Commercial, Government and Industrial Solutions Sector (CGISS). "With the addition of MeshNetworks, Motorola will gain an outstanding team and a proven suite of products. The acquisition also represents another step in Motorola's commitment to deliver seamless mobility to all of our customers."
MeshNetworks has developed a wide range of sophisticated mobile ad-hoc networking, broadband radio and position-location technologies.
MeshNetwork's technologies and products enable users of mobile communications devices to create their own self-forming and self-healing broadband networks. These networks are capable of operating even under the harshest conditions and form rapid connections among themselves without any existing network infrastructure. The technology also enables network operators to move beyond the limitations of "hotspots" that typically restrict wireless service to within 300 feet of an access point, and instead build "hot zones" that offer continuous outdoor coverage over large metropolitan areas.
Motorola and MeshNetworks have an existing agreement through which Motorola licenses MeshNetworks MeshConnex(TM) software for 802.11 wireless LANs and distributes their MeshNetworks Enabled Architecture (MEA(TM)) product line through its direct sales and re-seller network. Motorola Ventures, the investment arm of Motorola, is an investor in MeshNetworks.
About Motorola
Motorola, Inc. (NYSE: MOT) is a global leader in wireless, broadband and automotive communications technologies that help make life smarter, safer, simpler, synchronized and fun. Sales in 2003 were U.S. $27.1 billion. Motorola creates innovative technological solutions that benefit people at home, at work and on the move. The company also is a progressive corporate citizen dedicated to operating ethically, protecting the environment and supporting the communities in which it does business. For more information: http://www.motorola.com/
Business Risks
The statements in this release that are not historical facts are forward- looking statements based on current expectations and involve risks and uncertainties. Such forward-looking statements include, but may not be limited to, statements about the anticipated timing of the transaction and the potential impact the acquisition will have on Motorola. Motorola wishes to caution the reader that the factors below and those on pages 76 through 85 of Motorola's Form 10-K for the year ended December 31, 2003 and in its other SEC filings could cause Motorola's results to differ materially from those described in the forward-looking statements. These factors include: (i) unforeseen factors that could impact the timely completion of the transaction on the terms described, (ii) difficulties in integrating the operations of the newly-acquired business and achieving strategic objectives, (iii) difficulties and delays in the development, production, testing and marketing of acquired technologies, (iv) the uncertainties related to introducing new technologies, including customer acceptance of the products and technologies, (v) the ability to differentiate our products and compete with other companies in the same markets, and (vi) the general outlook for the economy and the telecom industry.
CONTACT: Media, Jennifer Weyrauch, +1-847-435-5320,
jennifer.weyrauch@motorola.com , or Adrienne Dimopoulos, +1-847-576-6612,
adrienne.dimopoulos@motorola.com , both of Motorola, Inc.
Web site: http://www.motorola.com/
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