LONDON One of the oldest and most well established names in embedded computing, Motorola's Communications Computing group, is being acquired, for $350 million in cash by Emerson Electric.
Emerson (St. Louis) said Friday (Sept. 28) that the Motorola unit will be a good fit to the Artesyn Technologies Inc.embedded computing operation it bought last year. The deal also represents a significant consolidation in the sector, which is said to be worth $6 billion a year and growing.
The Motorola unit being bought had sales in the last financial year of about $520 million, and the division will become part of Emerson's Network Power group.
Motorola said in a statement that the sale is a continuing part of its strategy to "focus on core businesses and technologies and [the deal] provides additional capital to drive further growth."
The Motorola ECC business provides embedded computing products and services to communication infrastructure and equipment manufacturers in telecommunications, medical imaging, defense and aerospace and industrial automation. Headquartered in Tempe, Ariz., the unit, which was formed in 1980, employs about 1,100 workers, mostly engineers.
Emerson said the deal brings complementary technologies to its own offerings in the embedded computing and embedded power businesses.
Commenting on the deal, which is expected to be completed by the end of the year, David Farr, chairman, CEO and president, Emerson, said: "The combination of Motorola's ECC business with the $100 million embedded computing business we acquired as part of Artesyn last year establishes Emerson as a leader in the embedded computing industry. Through this transaction, Emerson can provide greater capabilities to our customers as they adopt advanced new technologies and expand applications for their customers."
Both Emerson Network Power and Motorola ECC have been at the forefront of developing the Advanced Telecommunications Computing Architecture (AdvancedTCA) and Micro Telecommunications Computing Architecture (MicroTCA) standards.
Motorola’s involvement in embedded communications began when it acquired Arizona-based Four-Phase Systems Inc. in 1982. The group, with 1000 employees split between Arizona and Germany operations, was instrumental in such standards organizetions as VMEbus Manufacturers Group, PCI Industrial Computing Manufacturers Group, and Communications Platform Trade Association.