Motorola has completed its acquisition of Airwave, the former provider of the mobile communications network for UK emergency services.
The acquisition was completed on a debt-free basis with a net cash payment of around £700 million, with a deferred cash payment of £64 million to be made in November 2018.
Motorola expects the acquisition to immediately contribute to non-GAAP earnings and free cash flow.
Airwave is headquartered in Berkshire, England, and employs roughly 600 people. It is owned by a fund of Australia’s Macquarie Group.
In late 2015, Airwave filed a legal challenge to the Home Office after EE became the preferred supplier to provide a 4G network to the UK emergency services. Motorola is the preferred bidder for user services to the emergency services.
Airwave complained about the procurement process and the inability of the cellular network to handle the traffic. Currently these services are provided through Airwave’s own terrestrial trunked radio, or Tetra network, which will cease to be a component of police radios.
The decision to move from Tetra has been criticised by some, including members of the Tetra + Critical Communications Association.
Advocates of moving to 4G cite alleged failures of the network during the 2011 riots.
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"The acquisition of Airwave enables us to significantly grow our managed and support services business and reflects our commitment to the public safety users in Great Britain," said Greg Brown, chairman and CEO of Motorola Solutions.
"The combination of our years of experience as a trusted global leader in mission-critical communications and Airwave’s proven service delivery platform will provide Great Britain with innovative emergency services technology that enhances public safety today and into the future."
