Motorola Solutions Inc (NYSE:MSI) is looking to search for potential bidder for its declining wireless LAN business, which is facing intense competition from competitors like Cisco Systems, Inc. (NASDAQ:CSCO) from the top and Ubiquiti Networks Inc (NASDAQ:UBNT) from the bottom, revealed by source familiar with the matter.
After get rid of its wireless LAN business the company will focus on its public safety and core communication services provider for government. The provider of telecommunications equipment and data communications, which did well after the spin-off of the mobile devices business into Motorola Mobility in 2011, was acquire by Google Inc (NASDAQ:GOOG) for $12.5 billion.
Motorola Solutions’ enterprise unit, that is wireless facility for local area network unit, has struggled due to competition from rivals like Hewlett-Packard Company (NYSE:HPQ), Aruba Networks, Inc. (NASDAQ:ARUN) and Ubiquiti Networks Inc.
The company’s revenues decrease by a mid-single figure percentage point in Q3, after a huge 30% decrease in Q2. According to Dell’Oro group a research firm said, the international enterprise wireless LAN business is likely to be a $4 billion market in current year. Currently, Cisco is the top leader of market with approximately 55% of the industry segment revenue, while Aruba just more than 12%.
The company that has a market value of more than $16 billion led the market in the two-way the U.S. government is its largest customer as well as public-safety products and radio market with its land-mobile-radio structure. Its government unit brought in approximately 70% of its total revenue in 2012.
The existing effort to get rid of the wireless LAN division is a series of its attempt to put on sale of its non profit units. Previously the firm sold its wireless network for $975 million to Nokia Siemens Networks in 2011, and in the same year the firm has advertised its small broadband networks division to takeover Vector Capital Company for an unidentified amount. Motorola Solutions Inc (NYSE:MSI) shares dropped -0.08% to $60.87 in current session.
Leave a Reply