Motorola bidding for UK Airwave

wellington-bootFormer rubber boot maker Motorola Solutions is to write a cheque for the UK-based Airwave for $1.24 billion in a bid to improve itsĀ  services business.

Airwave is owned by Australia’s Macquarie Group and provides voice and data communications to more than 300 emergency and public service agencies in Blighty..

Motorola, which is famous for its walkies-talkies, sales have slipped as its major customers, which include police and fire departments as well as other government agencies, curtail budgets.

The company is trying to strengthen its services business which provides communication services to governments, businesses and public safety agencies.

Motorola Solutions said it plans to fund the purchase of Airwave, which has about 600 employees, with bank financing and cash on hand.

The deal is expected to add to adjusted earnings and free cash flow immediately after closing in the first quarter of 2016, Motorola said.