Motorola Solutions acquires Silvus Technologies for USD $4.4 billion
Motorola Solutions has completed its acquisition of Silvus Technologies Holdings, a company specialising in mission-critical mobile ad-hoc networks (MANET), for an upfront consideration of USD $4.4 billion.
The consideration for the transaction was composed of approximately USD $4.38 billion in cash, subject to customary adjustments, and about USD $20 million in restricted stock to certain employee equity holders. There is also potential for earnout consideration of up to USD $600 million in the aggregate, dependent on business performance over consecutive twelve-month periods ending in 2027 and 2028.
Strategic rationale
Silvus is based in Los Angeles and develops MANET technology intended to support operations in challenging or contested environments, such as defence, law enforcement, and public safety missions. Its technology enables secure voice, data, and video communications without reliance on fixed infrastructure.
Devices connected via Silvus technology can form large, scalable, and self-healing networks that accommodate mobility and tough conditions. These networks are designed to seamlessly support bandwidth-intensive uses, including video streaming, the deployment of sensors, and the operation of drones.
"Silvus' advanced solutions for drone and unmanned systems are trusted in the world's most demanding defence environments, and offer vital applications for border security and public safety," said Greg Brown, Chairman and CEO, Motorola Solutions. "Their capabilities are an excellent complement to our land mobile radio and video technologies, and we look forward to bringing them to more customers around the world."
Autonomous technologies - such as drones, vehicles, and robots - are increasingly being adopted to improve safety for soldiers and law enforcement personnel. Silvus' MANET solutions allow operators to control such systems with low latency, which the company states can help reduce risks to people while providing increased situational awareness through reliable, high-speed connectivity.
Market expansion
Silvus works with a variety of clients, comprising defence agencies, autonomous systems manufacturers, intelligence services, law enforcement organisations, and enterprise customers around the globe. Motorola Solutions intends to leverage its own international reach along with long-established relationships in government and public safety to expand the presence of Silvus' technology.
Erik Fagan, Partner and Head of Industrial Technology at TJC, commented on the transaction and the company's expertise:
"Working with Babak and the Silvus team, we've seen firsthand how their expertise has created truly disruptive communications technology. They've built an exceptional company serving a critical need, and we are excited to watch their next successful chapter unfold with Motorola Solutions as a global leader in safety and security."
Babak Daneshrad, PhD, CEO of Silvus Technologies, said the acquisition brings together complementary strengths from both organisations:
"We have always respected Motorola Solutions' leadership. At our core, both our companies are driven by innovation that makes the world safer. Bringing our advanced engineering teams together amplifies our ability to build more powerful solutions to serve more customers globally. I am incredibly optimistic about the future we have with Motorola Solutions."
Financial overview
The transaction sets an upfront valuation of Silvus at USD $4.4 billion. The inclusion of an earnout clause allows for up to an additional USD $600 million based on the achievement of agreed performance targets over specified periods ending in 2027 and 2028. The earnout mechanism is tied to the business performance and growth of the Silvus segment within Motorola Solutions.
Motorola Solutions stated that further details on the acquisition and its financial impact would be shared with analysts and stakeholders during the company's regularly scheduled quarterly conference call with financial analysts.
Silvus' MANET technology is expected to complement Motorola Solutions' existing offerings in land mobile radio and video technology, supporting the company's strategy of providing integrated solutions for safety, security and operational efficiency across various sectors.
