Emerson to buy Motorola unit for $350 million

Diversified manufacturer Emerson Electric Co agreed to buy a Motorola Inc unit that serves the telecommunications, medical and defense industries for $350 million in cash, the companies said today.

Emerson, whose portfolio includes motors, thermostats, storage units for supermarkets and technology to improve manufacturing efficiency, will acquire Motorola's Embedded Communications Computing business by the end of the calendar year, the companies said.

The Motorola business, which had sales last year of about $520 million, provides embedded computing products and services to communication infrastructure and equipment makers in the telecommunications, medical imaging, defense and aerospace, and industrial automation industries, the companies said.

It will become a part of the Emerson Network Power business, boosting St. Louis, Missouri-based Emerson's presence in the $6 global billion merchant embedded computing business, the companies said.

“Wireless adoption is driving long-term telecommunications market growth and broadband applications are reviving near-term wireline investment, ť Emerson Chief Executive David Farr said in a statement.

"As we watch the telecom world quickly bring voice, video and data together for its customers, we believe the addition of the Motorola ECC business significantly strengthens our position for growth," he added.

Cell phone maker Motorola, based in Schaumburg, said the deal allows it to focus on its core businesses.

Based in Tempe, Ariz., the Motorola business employs about 1,100 people, the companies said.

The primary purpose of embedded computing technology is to control machines or other computer systems and manipulate data, the companies said. For example, in the telecom sector, such technology routes and monitors voice, video and data traffic across multiple networks.