May 27 (Reuters) - Motorola Solutions ( MSI ) said on
Tuesday it would acquire wireless-radio maker Silvus
Technologies for $4.4 billion as the safety equipment maker
looks to bolster its position in the market and take advantage
of rising demand.
The acquisition could help Motorola develop and improve its
communications hardware to meet high orders for devices such as
radios amid rising geopolitical tensions and regional conflicts.
Under the terms of the deal, Silvus has the potential to
receive an earn-out of up to $600 million based on its business
performance over twelve-month periods ending in 2027 and 2028.
The buyout is expected to close in the third or fourth
quarter of this year.
Founded in 2004 and headquartered in Los Angeles, Silvus
Technologies makes advanced wireless communication systems for
mission-critical applications such as military and maritime
operations.
Silvus' investments in integrating artificial intelligence
into its communications systems have benefited the company as
the public sector invests heavily in modernizing military
capabilities.
Last month, Motorola launched an AI tool that works with its
software to process information and collect data more quickly in
order to help first responders save time and react faster during
emergencies.
Motorola forecast weak second-quarter profit at the start of
the month and flagged higher material costs for the year owing
to uncertainty created by a shifting U.S. trade policy.