Zebra Technologies’ $3.45 billion purchase of Motorola Solutions’ enterprise business is really a bit play for the “enterprise Internet of things” where asset tracking as well as the data thrown off from it lead to business advantage.
The purchase makes a lot of sense on many levels, but it’s worth noting that Motorola Solutions’ larger enterprise unit could give Zebra indigestion. Zebra has $1 billion in annual sales compared to Motorola Solutions enterprise unit, which has $2.5 billion in annual revenue.
Zebra is using $200 million in cash and $3.25 billion in debt to fund the deal.
The debt load and size differential could be worrisome, but strategically the deal makes sense. Zebra specializes in RFID systems and bar codes to track inventory as well as analytic software. Motorola Solutions’ enterprise unite adds mobility to the equation as well as strength in manufacturing and logistics.
The two companies together will be the front end of asset tracking as well as sensor networks and be able to utilize that data thrown of from RFID, mobile devices and bar codes.