Motorola to Extend Wireless Broadband
Capabilities Through Acquisition of Orthogon Systems
Motorola, Inc.
April 18, 2006
SCHAUMBURG, Ill. -- Motorola, Inc. (NYSE: MOT) today
announced that it has signed a definitive agreement to acquire
Orthogon Systems, a privately held, leading provider of
high-performance fixed wireless solutions. The addition will expand
the MOTOwi4 portfolio of IP, wireless broadband solutions. Terms of
the transaction were not disclosed. The acquisition, which is subject
to regulatory and other customary conditions, is expected to close in
the first half of 2006.
Orthogon's industry leading expertise in wireless Ethernet
connectivity is highly strategic to Motorola’s rapidly growing
wireless broadband business. A pioneer in intelligent OFDM-based,
wireless IP, point-to-point transmission solutions, Orthogon has
developed and successfully marketed innovative, software-defined
Ethernet bridges. With this acquisition Motorola will enhance its OFDM
capability and broaden the support of its MOTOwi4 wireless broadband
offerings -- including WiMAX, Mesh Solutions and Canopy products --
and accelerate the growth of its existing wireless IP access business.
Motorola expects to advance Orthogon core technology to build it into
a series of future products.
Orthogon, headquartered in Ashburton, England, is known for delivering
true non-line of sight and reliable connectivity in the most
challenging environments. The Company has an impressive portfolio of
products and technologies including its award-winning wireless
Ethernet bridges that are renowned for their high performance,
security, and ease of installation and management. Since July 2003,
Orthogon has installed thousands of wireless links, successfully
connecting disparate networks within corporate enterprises, service
providers and municipalities in 53 countries worldwide.
"Orthogon is at the forefront of innovation in wireless OFDM
point-to-point solutions and is highly complementary to Motorola’s
MOTOwi4 wireless broadband capabilities," said Greg Brown, President,
Motorola’s Networks and Enterprise business. "Orthogon products and
technologies will advance Motorola’s vision of seamless mobility by
providing customers with easy, uninterrupted access to communication
and information. By combining Orthogon’s expertise and best-in-class
product portfolio with Motorola’s strength in product and technology
development, we are confident that Motorola will be a stronger
competitor with a broader product portfolio and enhanced prospects for
continued growth and success."
"This is an outstanding transaction for our company and we look
forward to taking our solutions to the next level as part of
Motorola," said Philip Bolt, President and CEO of Orthogon. "Motorola
is at the forefront of mobile communications and wireless broadband
technology, making it the ideal partner for Orthogon. This combination
creates exciting future growth opportunities for Orthogon, our
customers and our employees and we look forward to joining the
Motorola team."
Motorola has an existing minority equity investment in Orthogon, which
was driven by its venture capital arm, Motorola Ventures. In addition,
Motorola has been a distributor of Orthogon’s products through its
Canopy business since 2004.
About Motorola
Motorola is known around the world for innovation and leadership in
wireless and broadband communications. Inspired by our vision of
Seamless Mobility, the people of Motorola are committed to helping you
get and stay connected simply and seamlessly to the people,
information, and entertainment that you want and need. We do this by
designing and delivering "must have" products, "must do" experiences
and powerful networks -- along with a full complement of support
services. A Fortune 100 company with global presence and impact,
Motorola had sales of US $36.8 billion in 2005. For more information
about our company, our people and our innovations, please visit
www.motorola.com.
About Orthogon
Orthogon Systems is a leading provider of high-performance fixed
wireless solutions known for delivering reliable connectivity in the
most challenging environments. Based on unique, patented intelligent
radio technology, the award-winning OS-Gemini and OS-Spectra products
are secure, easy-to-install and self-managing. Since July 2003,
Orthogon has installed thousands of wireless links, successfully
connecting disparate networks within corporate enterprises, service
providers and municipalities in 53 countries worldwide and growing.
Orthogon Systems is headquartered in Ashburton, England with offices
in Moscow, Dubai, Singapore and Shanghai. The legal name of the
company is Piping Hot Networks Limited, which operates under the name
of Orthogon Systems. For more information, please visit
www.orthogonsystems.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 contained in Item 1A of Motorola's Form 10-K for the year
ended December 31, 2005, as amended, 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 in retaining employees at Orthogon,
(iv) difficulties and delays in the further development, production,
testing and marketing of acquired technologies, (v) uncertainties
related to broader deployment of relatively new technologies,
including customer acceptance of the products and technologies, (vi)
the ability to differentiate our products and compete with other
companies in the same markets and (vii) the general outlook for the
economy and the telecom industry
Media contacts
Jennifer Weyrauch
+1 847 435-5320
jennifer.weyrauch@motorola.com
Anastasia Bullinger
+1 847-632-3342
abullinger@motorola.com
Dava Curtin
+1 703-830-1912
dava.curtin@orthogonsystems.com |
