Offers £129 million cash to step into ruggedized mobile computing arena
Motorola Solutions and Psion today announced that they have agreed on the terms of a recommended offer by Motorola Solutions for all Psion shares for 88 pence (US $1.36) in cash per Psion share, a total offer of £129 million ($200 million).
Psion has been a provider of ruggedized mobile computing products and their application in industrial segments around the world. With headquarters in London and a major operational presence near Toronto, Canada, Psion has been involved in mobile computing solutions since 1980. Psion has approximately 830 employees, customers in more than 50 countries and delivered 2011 revenues of £176 million (approximately $273 million).
Greg Brown, chairman and CEO of Motorola Solutions, said: 'Psion is a compelling opportunity to strengthen our mobile computing portfolio with ruggedized handheld products and vehicle-mount terminals that will deepen our presence in the global markets in which we compete.'
John Hawkins, chairman of Psion, said: 'The Psion directors are pleased to unanimously recommend this offer by Motorola Solutions at a price which offers a significant cash premium to both the current and recent market prices. Psion continues to successfully deliver on its strategy of introducing exciting new products while strictly managing the cost base. The offer by Motorola Solutions provides Psion's shareholders with certainty in an environment where certainty is in short supply.'
Under the terms of the acquisition, Psion shareholders will receive 88 pence ($1.36) in cash for each Psion share through a recommended cash offer, valuing Psion's issued ordinary share capital at approximately £129 million ($200 million). The consideration represents a premium of approximately 45% to the closing price of 60.5 pence per Psion share on 14 June 2012, the last trading day prior to this announcement and a premium of approximately 66% to the six month average price of 52.9 pence per Psion share prior to 15 June 2012.
Upon completion of the acquisition, Motorola Solutions will combine Psion within Motorola Solutions' Enterprise Mobile Computing (EMC) business, reporting to Girish Rishi, corporate vice president, EMC. The acquisition is expected to close in the fourth quarter of 2012.
<div>Motorola Mobility was acquired by Google at the end of May this year for $12.5 billion. </div>