CHICAGO - Motorola Solutions, Inc. (NYSE: NYSE:MSI), a global leader in communication solutions, has announced the acquisition of 3tc Software, a U.K. company specializing in control room software for emergency services. The move is intended to enhance Motorola Solutions' command center portfolio by integrating 3tc's computer-aided dispatch (CAD) software, which aids 999 call-takers in emergency situations.
3tc's CAD software is recognized for its efficiency in high-stress environments, providing a single-screen interface that quickly relays critical data, including the real-time location of emergency callers and responders. This technology is crucial for expediting the dispatch of assistance in emergencies.
Executive Vice President and Chief Technology Officer of Motorola Solutions, Mahesh Saptharishi, highlighted the importance of CAD software in emergency response and the company's longstanding support of U.K.'s police agencies. He noted that the acquisition extends their offerings to Fire and Rescue Services with a tailored solution.
David Todd, CEO of 3tc Software, expressed enthusiasm for joining Motorola Solutions, emphasizing a shared commitment to developing solutions that optimize emergency response workflows. The partnership between the two companies spans over five years, combining their expertise in serving U.K.'s public safety agencies.
The financial terms of the acquisition have not been disclosed.
Motorola Solutions is known for its technology that fosters collaboration among public safety agencies and enterprises, contributing to proactive safety and security measures. The company's solutions are designed to create safer communities, schools, hospitals, and businesses.
This acquisition is a strategic expansion for Motorola Solutions, which has previously resold 3tc Software's CAD solution in the U.K. The integration of 3tc's software is expected to advance Motorola Solutions' product offerings and support its mission of enhancing safety and efficiency for emergency services.
The information for this report is based on a press release statement from Motorola Solutions.
In other recent news, Motorola Solutions has been making significant strides in its financial performance. The company reported a 15% increase in its products and systems integration revenue, a 56% surge in operating earnings, and earnings per share growth of 22%. The company generated $180 million in operating cash flow and ended the quarter with a $14 billion backlog. Full-year revenue growth is projected at around 8%, with non-GAAP EPS forecasted between $13.22 and $13.30.
Motorola Solutions has also announced the acquisition of 3tc Software, a U.K.-based provider of control room software solutions. This acquisition is seen as a move to further integrate their combined expertise in advancing CAD for U.K.'s public safety agencies.
Evercore ISI and Jefferies maintained their positive ratings on Motorola Solutions, with Jefferies increasing its price target to $510, highlighting the company's growth opportunities in Land Mobile Radio services. Motorola Solutions has invested over $250 million in acquisitions and plans to allocate approximately $850 million to R&D in 2023.
In addition to these developments, Motorola Solutions announced changes to its executive compensation, including a significant increase in the target annual long-term incentive for its CEO, Gregory Q. Brown, and a special retention grant for three senior executive leaders.
Lastly, Motorola Solutions expanded its board of directors with the appointment of Elizabeth Mann, CFO of Verisk Analytics (NASDAQ:VRSK), whose experience is expected to bring valuable insights.
InvestingPro Insights
Motorola Solutions' acquisition of 3tc Software aligns well with its strong market position and financial performance. According to InvestingPro data, the company boasts a market capitalization of $75.73 billion, reflecting its significant presence in the Communications Equipment industry. This acquisition is likely to further solidify Motorola's market standing, which is already robust as indicated by its stock trading near its 52-week high.
The company's financial health appears strong, with revenue growth of 7.94% over the last twelve months and an impressive EBITDA growth of 13.04% during the same period. These figures suggest that Motorola Solutions is in a good position to integrate 3tc Software and potentially leverage its technology to drive further growth.
InvestingPro Tips highlight that Motorola Solutions has raised its dividend for 13 consecutive years, indicating a commitment to shareholder returns. This consistent dividend growth, coupled with the company's strategic acquisitions like 3tc Software, may contribute to its long-term value proposition for investors.
It's worth noting that Motorola Solutions is trading at high valuation multiples, including a P/E ratio of 51.66. While this might suggest investor confidence in the company's growth prospects, it also implies that the market has high expectations for future performance, which the 3tc Software acquisition may help fulfill.
For readers interested in a deeper analysis, InvestingPro offers 15 additional tips for Motorola Solutions, providing a more comprehensive view of the company's financial health and market position.
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