Companies agree communications purchase

Motorola's ECC business is set to become part of Emerson Network Power

Emerson has agreed to acquire Motorola's embedded communications computing (ECC) business for US $350 million in cash. Motorola's ECC business, which had 2006 revenue of approximately US $520 million, will strengthen Emerson's position in the US $6 billion merchant embedded computing industry.
Upon completion of the transaction, Motorola's ECC business will become part of Emerson Network Power.

The transaction is expected to be completed by the end of the calendar year and is subject to customary closing conditions and regulatory approvals.

Motorola's ECC business is a provider of embedded computing products and services to communication infrastructure and equipment manufacturers in telecommunications, medical imaging, defence and aerospace and industrial automation.

For Emerson, the transaction enhances its ability to meet the embedded computing needs of customers in telecommunications and other industries.

Motorola's ECC business brings complementary advanced technology and leverages existing marquee customer relationships with Emerson Network Power's embedded computing and embedded power businesses.
For Motorola, the transaction sharpens its focus on its core businesses and technologies and provides additional capital to drive further growth and enhance shareholder value.

David Farr, Chairman, Chief Executive Officer and President, Emerson said 'The combination of Motorola's ECC business with the US $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'.

'We are pleased to announce this transaction with Emerson', said Ed Zander, Chairman and Chief Executive Officer, Motorola.

'We regularly evaluate our company's portfolio to ensure alignment with our core vision and business strategies to enhance shareholder value'.

'We believe that Emerson has the proven track record to continue to serve ECC's customers with the same high-quality and level of products and services'.

The primary purpose of embedded computing technology is to control machines or other computer systems and manipulate data.

For example, in telecommunications, embedded computing consolidates, translates, routes and monitors voice, video and data information across multiple networks.

Local and long distance wireline offices and wireless base stations depend on embedded computing technologies to operate at peak performance.

Emerson Network Power and Motorola ECC embedded computing technologies feature industry standards known as Advanced Telecommunications Computing Architecture (AdvancedTCA) and Micro Telecommunications Computing Architecture (MicroTCA).

These standards are being adopted by major telecom companies because they increase network capacity while lowering the total cost of ownership.

'Wireless adoption is driving long-term telecommunications market growth and broadband applications are reviving near-term wireline investment', Farr said.

'As we watch the telecom world quickly bring voice, video and data together for its customers, we believe the addition of the Motorola ECC business significantly strengthens our position for growth'.