The US-based Motorola Solutions announced its deal to buy Airwave for £817.5 million or $1.2 billion, the largest private operator of a public safety network in the world.
The UK-based Airwave provides mission-critical voice and data communications to more than 300 emergency and public service agencies in Great Britain. Motorola Solutions operates more than 20 public safety networks in countries such as Norway, Denmark, Austria, Australia and the United States.
Its network – utilizing Terrestrial Trunked Radio (TETRA) technology from Motorola Solutions –covers 99 percent of Great Britain. The company communication offers services to more than 300,000 police, fire, ambulance and other emergency personnel.
Airwave, headquartered in Berkshire, England, has approximately 600 employees.
Fitch Ratings in a statement said that it believes the deal fits Motorola Solutions focus on growth opportunities in services
“The Airwave acquisition demonstrates our commitment to public safety in Great Britain and to growing our Managed & Support Services business,” said Greg Brown, chairman and CEO of Motorola Solutions.
Fitch Ratings has given Negative ratings to Motorola Solutions, following the company’s announced acquisition of Airwave Solutions. Fitch’s actions affect $6.5 billion of debt, including the company’s undrawn $2.1 billion revolving credit facility (RCF). Fitch said the acquisition should add more than $550 million of higher profit margin annual revenues with minimal capital intensity.
