August 23, 2011
Vector Capital to Purchase Orthogon and Canopy Businesses from Motorola Solutions
SAN FRANCISCO and SCHAUMBURG, Ill., Aug. 23, 2011 — Vector Capital and Motorola Solutions, Inc. (NYSE: MSI) today announced that they have reached an agreement under which Vector Capital will acquire Motorola Solutions’ Point-to-Point (PTP or Orthogon) and Point-to-Multipoint (PMP or Canopy) Wireless Broadband Networks businesses for an undisclosed amount. The transaction is expected to be completed as early as the end of September and is subject to customary closing conditions.
The Motorola PTP and PMP businesses are leaders in the wireless broadband industry. They are renowned for their extensive portfolios of unlicensed and licensed solutions that address key industry verticals, as well as a strong technology base that supports the broadest range of applications of any business in their market segments. With extensive technical expertise and experience, high reliability, superior quality control, and unparalleled customer support, these businesses are well positioned for the future.
Vector Capital, a private equity firm, intends to operate the businesses as a single standalone company called Cambium Networks that will be well-funded and positioned to benefit from a more tailored focus and agile organizational structure. Motorola Solutions plans to continue to purchase products from Cambium Networks to meet the broadband needs of its key direct public safety and federal accounts.
“We look forward to working with Motorola Solutions to spinout Cambium Networks," said Alex Slusky, managing partner at Vector Capital. “Vector has deep experience restoring focus and accelerating growth at non-core divisions of the largest global technology companies. We will enable the Cambium management team to build the leading independent provider of PTP and PMP solutions. We are committed to taking great care of customers and creating future opportunities for the employees of the new Cambium Networks."
“We are pleased to have reached this agreement, which will further streamline the Motorola Solutions portfolio and position PTP and PMP for even greater success,” said Greg Brown, chairman and CEO, Motorola Solutions. “Vector Capital has a strong track record in growing technology businesses, and we believe its continued targeted investment and oversight will best position these industry-leading brands to serve their distinct customer bases.”
Phil Bolt, vice president, Wireless Network Solutions, for Motorola Solutions, will serve as CEO of Cambium Networks. Bolt has extensive experience in the wireless broadband industry. To ensure a seamless transition and continuity of service, PTP and PMP senior management, sales, supply chain, technical support, product management, marketing, and research and development teams will transfer to Cambium Networks.
“The launch of the Motorola Solutions’ Canopy and Orthogon business units as Cambium Networks will create an exciting and significant growth opportunity for both Cambium Networks and our partners,” Bolt said. “Our partners will continue to receive the innovative products, quality and support for which we are renowned, only now with the advantage of increased focus and flexibility.”
About Vector Capital
With over $2 billion of capital, Vector Capital is a leading global private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets. Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders. Among Vector's notable investments are Aladdin Knowledge Systems, Certara, Corel, LANDesk, Precise Software Solutions, Printronix, RAE Systems, Register.com, SafeNet, Savi Technology, Trafficmaster, WatchGuard Technologies, and WinZip. For more information, visit www.vectorcapital.com.