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Standard-Horizon To Be Acquired by Motorola
|Author||Topic: Standard-Horizon To Be Acquired by Motorola|
posted 11-05-2007 09:30 PM ET (US)
Marine electronic manufacturer Standard-Horizon's parent company, Vertex Standard, is the object of a take over acquisition by electronics giant Motorola. Motorola has long been recognized as the gold-standard of two-way communications radios. As a benchmark of their dominance in the field, it was often cited that the Tokyo police force used Motorola radios.
Press Release follows
Motorola Commences Tender Offer to Acquire Controlling Interest in Vertex Standard Co., Ltd., to Form Joint Venture with Tokogiken
Transaction to Enhance Motorola's 2-Way Radio Product Offering, Development Expertise and Channels to Market
SCHAUMBURG, Ill. and TOKYO, JAPAN
5 November 2007
Motorola, Inc. (NYSE: MOT) announced today that its subsidiary, MI, Inc., will launch a tender offer to acquire a controlling interest in Vertex Standard Co., Ltd. (JASDAQ: 6821), a global provider of 2-way radio communication solutions. Upon successful completion of the tender offer and subsequent restructuring process, Motorola will own 80% of Vertex Standard and Tokogiken, a privately held Japanese company, controlled by Jun Hasegawa, current president and CEO of Vertex Standard, will retain 20%, forming a joint venture. On 5 November 2007, the Board of Directors of Vertex Standard expressed their support of the tender offer.
"As a leading provider and pioneer in 2-way radio communication solutions, Motorola is an excellent strategic partner for our business," said Jun Hasegawa, president and CEO of Vertex Standard. "The joint venture will give Vertex Standard access to Motorola's global distribution channels, presenting considerable opportunities for Vertex Standard to drive growth. We also expect to reduce costs, as we will benefit from Motorola's global scale and resources. With Motorola, Vertex Standard will be stronger and better positioned to deliver new and innovative 2-way radio solutions for professionals and consumers around the world."
"This joint venture will enable Motorola and Vertex Standard to deliver an enhanced combined product offering to new regions and customers worldwide," said Mark Moon, senior vice president of Motorola's Government and Commercial Markets. "We are extremely pleased to announce this transaction, which will improve our ability to address the growing needs of our 2-way radio customers worldwide. We look forward to the continued leadership of Jun Hasegawa and making this new joint venture a success."
The tender offer price is Yen2,214 (approximately US $19.38) per share of common stock. This price represents:
Vertex Standard is a leader within the Land Mobile Radio segment, where the company continues to demonstrate particular brand strength in high value, entry level solutions. The joint venture will develop and sell Vertex Standard branded products and develop select Motorola branded products. The Motorola brand will continue to focus on higher featured, higher tier products and continue to utilize existing Motorola distribution channels.
The joint venture will expand and develop a comprehensive suite of products to address the rapidly growing demand for 2-way radio solutions. Vertex Standard's strength in the Amateur, Marine and Airband (Avionics) segments will also provide Motorola with access to new business opportunities. In addition, Vertex Standard's solutions are highly complementary with Motorola's products and will add greater depth and breadth to Motorola's Government and Public Safety business. The venture will also provide additional engineering talent for Motorola.
Additional Transaction Details
The shareholders of Vertex Standard who do not tender their shares in the tender offer will receive cash consideration for the shares which they hold as a result of the restructuring following successful completion of the tender offer.
The tender offer, which is subject to regulatory and other customary conditions, is expected to close in early January 2008. In addition, Motorola must complete the tender offer within 60 working days of its commencement, as required by Japanese law.
About Vertex Standard
posted 11-05-2007 09:33 PM ET (US)
Reaction to the announcement was extremely favorable from the amateur radio community, where another Vertex subsidiary, Yaseau, has a strong product line. See:
posted 11-05-2007 09:37 PM ET (US)
Reaction at Vertex was also favorable. Jun Hasegawa, president and CEO of Vertex Standard, said:
"The joint venture will give Vertex Standard access to Motorola's global distribution channels, presenting considerable opportunities for Vertex Standard to drive growth. We also expect to reduce costs, as we will benefit from Motorola's global scale and resources. With Motorola, Vertex Standard will be stronger and better positioned to deliver new and innovative 2-way radio solutions for professionals and consumers around the world."
posted 11-10-2007 09:56 AM ET (US)
I received these comments from Jason Kennedy, who is Executive Vice President of Standard Horizon:
"I am excited to see what the joint engineering capabilities of these two
"I can not stop saying 'Hello Moto!'"
posted 11-11-2007 05:44 PM ET (US)
Jason's a very good guy. I was wondering what his response would be.
posted 11-14-2007 11:06 PM ET (US)
I have a Standard Horizon CP150 chart plotter upstairs that still works flawlessly after 7+ years. Fine Product.
posted 01-17-2008 07:23 AM ET (US)
Motorola Successfully Completes Tender Offer for Controlling Interest in Vertex Standard Co. Ltd.
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