Silver Lake To Invest $1 Billion In Motorola Solutions

By Ciara LinnaneMarketWatch Pulse

Private-equity firm Silver Lake is investing $1 billion in Motorola Solutions in a transaction expected to close in the third quarter. As part of the deal, Silver Lake Managing Partners Egon Durban and Greg Mondre will join the Motorola board. In a statement, the executives said Motorola is "creating a new era in data-rich public safety communications and has significant potential for growth." The firm is buying $1 billion of Motorola's 2.0% convertible senior notes due 2020 with an initial conversion rate of $68.50 a share, equal to a 17% premium over the volume-weighted average price of the stock in the 30 trading days ended Aug. 4. Motorola is planning to to buy back up to $2 billion of stock, partially funded by the Silver Lake investment. Shares were indicating higher in light premarket trade, but are down 10% in the year so far, while the S&P 500 has gained 1.7%.

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