Motorola Solutions announced today (15 June 2012) that it will acquire rugged mobile computing manufacturer Psion for US $200m (£128m) in cash. The recommended offer values Psion shares at 88p (US $1.36).
Psion has been a pioneer in ruggedised mobile computing products and their application in industrial segments around the world. With headquarters in London and a major operational presence near Toronto, Canada, Psion has been a leader in mobile computing solutions since 1980. Psion has approximately 830 employees, customers in more than 50 countries and delivered 2011 revenues of £176m (US $273m).
Greg Brown, chairman and CEO of Motorola Solutions, said: ‘Psion is a compelling opportunity to strengthen our industry-leading, mobile-computing portfolio with ruggedized handheld products and vehicle-mount terminals that will deepen our presence in the global markets in which we compete.’
John Hawkins, chairman of Psion, said: ‘The Psion directors are pleased to unanimously recommend this offer by Motorola Solutions at a price which offers a significant cash premium to both the current and recent market prices. Psion continues to successfully deliver on its strategy of introducing exciting new products while strictly managing the cost base. The offer by Motorola Solutions provides Psion's shareholders with certainty in an environment where certainty is in short supply.’
Under the terms of the acquisition, Psion shareholders will receive 88p (US $1.36) in cash for each Psion share through a recommended cash offer, valuing Psion's issued ordinary share capital at approximately £129m (US $200m). The consideration represents a premium of approximately 45% to the closing price of 60.5p per Psion share on 14 June 2012, the last trading day prior to this announcement and a premium of approximately 66% to the six-month average price of 52.9p per Psion share prior to 15 June 2012. The acquisition is expected to close in the fourth quarter of 2012.
Motorola Solutions expects to realise cost and revenue synergies resulting in margin expansion opportunities and expects the transaction to be accretive to earnings per share on a non-U.S. GAAP basis in the first full year following completion and on a U.S. GAAP basis in the second full year following completion.
Upon completion of the acquisition, Motorola Solutions will combine Psion within Motorola Solutions' Enterprise Mobile Computing (EMC) business, reporting to Girish Rishi, corporate vice president, EMC.
Psion is one of the pioneers of quality mobile handheld computers and their application in industrial segments around the world. Psion has been an innovator in mobile computing since 1980 with the invention of the PDA. Teklogix, founded in 1967 and acquired by Psion in 2000, began development of rugged, wireless products in the early 80s. Today Psion helps its global customers solve their business problems through rugged mobile communications technology and applications.
Psion's core business is the design, manufacture, supply and service of rugged, handheld and vehicle-mounted devices designed to improve business efficiency and productivity for leading enterprises around the world.