Pretty good move to shore up enterprise base.

MOT will use cash in the transaction (MOT has nearly $15B in cash on the balance sheet). The purchase price represents a 30% premium to SBL’s 50-day moving average of $11.49 and a 35% premium to the 200-day. MOT is guiding that the transaction will be accretive in year one, that the combined company will experience a $100M run rate in operating synergies by 2007 (to be found in the supply chain and operating efficiencies) and that there will be material but unspecified top line synergies. Deal is expected to close in late 2006 or early 2007.

MOT management hosted a call this morning and justified the transaction with five main points:

1) accretive transaction

2) intellectual property – lots of technology that complements MOT (910 US and 680 International patents)

3) great customer base – ability to combine efforts, cross-sell, penetrate the enterprise

4) great people – engineering, innovation, management

5) ties into seamless mobility