he acquisition took place on a debt-free basis with Motorola Solutions making a net cash payment of approximately £700 million at closing. In addition, a deferred cash payment of £64 million will be made in November 2018. Motorola Solutions expects that the acquisition will be immediately accretive to its non-GAAP earnings and free cash flow. The company intends to incorporate Airwave into its 2016 financial outlook. The acquisition was originally announced on 4th December 2015.
Airwave delivers mission-critical voice and data communications to more than 300 emergency and public service agencies in Great Britain, including police, fire, rescue and ambulance services.
In addition to operating the Airwave Network, Airwave provides mobile applications to around a third of the UK’s police forces (in a non-mission critical capability) to reduce paperwork, and improve accuracy and operational efficiency. It is also active in the rural broadband sector, trialling broadband in a remote part of Yorkshire as part of a government-led programme. Formed in 2000, Airwave is headquartered in Berkshire, England, with approximately 600 employees.
The UK Home Office recently awarded (9 December) Motorola Solutions a long-term contract for the user services (Lot 2) for the Emergency Services Network (ESN), the future public safety network based on long-term evolution (LTE) technology, which will be operated by EE.
A Motorola Solutions company spokesperson spoke to Land Mobile regarding Airwave's legal action against the Home Office over the way which procurement for ESMCP Lot 3 (to provide a resilient national mobile network) was conducted.
"We can confirm that all disputes have now been settled and all litigation will be dropped," they said in a statement.
"For now, Airwave retains its name and will be referred to as ‘A Motorola Solutions Company’... Airwave will continue to operate as it does today."
“The acquisition of Airwave enables us to significantly grow our managed and support services business and reflects our commitment to the public safety users in Great Britain,” said Greg Brown, chairman and CEO of Motorola Solutions. “The combination of our years of experience as a trusted global leader in mission-critical communications and Airwave’s proven service delivery platform will provide Great Britain with innovative emergency services technology that enhances public safety today and into the future.”
