Motorola sells of their embedded communications computing unit to Emerson

Motorola sells of their embedded communications computing unit to Emerson

US based mobile phone maker Motorola has announced that they are selling off their embedded communications computing unit to Emerson Electric Co.

The deal is worth around $350 million and it would be conducted in a cash only transaction.

Motorola added that they are selling off the unit as they now aim to concentrate on their core businesses.

They are struggling to compete against Nokia and Samsung in the mobile phone market. With Apple entering the field, it becomes even more complicated for them in the US and European markets.

However, the announcement of the deal did not help the company much at the stock exchange as their share took a beating going down by around 3%.

Emerson Chief Executive David Farr spoke about this deal with Motorola: “Wireless adoption is driving long-term telecommunications market growth and broadband applications are reviving near-term wireline investment. As we watch the telecom world quickly bring voice, video and data together for its customers, we believe the addition of the Motorola ECC business significantly strengthens our position for growth.”