Motorola prepares for £103m acquisition of TTPCom
International communications giant Motorola has announced it is set to pay £103 million for local wireless innovator, TTP Communications.International communications giant Motorola has announced it is set to pay £103 million for local wireless innovator, TTP Communications.
The news sent the Melbourn firm’s share price through the roof – up past 232 per cent to 43.25 pence a share from 13 pence – as the market strained to match Motorola’s 45 pence per share offer.
The recommended cash offer is for the entire issued share capital of TTPCom and will be conducted by DPA, a company wholly owned by Motorola and specifically established to implement the offer.
Whilst no immediate plans for a reduction in headcount exist, in the mid and longer terms, an evaluation of the business of TTPCom will be undertaken by an integration team drawn from TTPCom and Motorola.
Motorola has assured TTPCom that the existing employment rights of all its management and employees will be honoured and pension obligations complied with. The company will also continue to be run from its Melbourn headquarters.
Motorola has said it will appoint new directors to the Board of TTPCom to conform to Motorola’s corporate governance guidelines, with the existing directors expected to resign to accommodate the new appointments.
TTPCom’s executives, however, will continue to be directly involved in the senior management of TTPCom and the integration process.
Dr Tony Milbourn, chief executive officer of TTPCom, will continue to lead TTPCom’s engineering, product development, product support and product management. TTPCom will be operated under the direction of Mr Rob Shaddock, chief technology officer of Motorola’s Mobile Devices Group.
The offer represents a premium of approximately 64 per cent to the closing price of 27.5 pence per TTPCom Share on 2 December 2005, being the latest trading day which is at least 180 days prior to the date of the announcement.
Dr Milbourn said: “This is an outstanding transaction for our company and we look forward to taking our solutions to the next level as part of Motorola. Motorola is a global leader in mobile devices and communications technology, making it the ideal partner for TTPCom.”
Ron Garriques, President of Motorola’s Mobile Devices business, said: “TTPCom is a leader in wireless software platforms, protocol stack and semiconductor solutions and is a highly complementary addition to Motorola’s mobile device technology portfolio.
“We already have a strong relationship with TTPCom and look forward to continuing the
momentum TTPCom has built with its customers and partners across the mobile industry.”