According to a news release from Motorola Solutions, which sells communications tech to public safety agencies, Silver Lake is cashing out $800 million worth of 2 percent convertible senior unsecured notes, the remainder of a $1 billion aggregate principal investment Silver Lake made in 2015 that was originally due in 2020. All told, Motorola will settle the 2020 notes one year early by paying Silver Lake approximately $1.1 billion in cash and issuing approximately 5.5 million shares.
In turn, Silver Lake has committed to invest another $1 billion in 1.75 percent convertible senior unsecured notes from Motorola Solutions that will mature in September 2024.
Egon Durban and Greg Mondre, managing partners and managing directors of Silver Lake, will keep their seats on the Motorola Solutions board.
“Motorola Solutions is a great company that has evolved into a leading mission-critical technology platform addressing the societal challenge of public safety,” Durban and Mondre said in a joint statement. “Greg (Brown, CEO of Motorola Solutions), the management team and employees have delivered extraordinary growth and shareholder value through innovative product development and world-class services for their customers … The company is positioned for continued growth with exciting new opportunities across its mission-critical communications, command center software and video analytics platform offerings.”
The renewed partnership with one of the world’s largest international tech investors comes at a time of growth for Motorola Solutions, whose acquisitions this year have included a license-plate-reading company, a dispatch provider and a body camera maker.
