Motorola concludes control of Vertex Standard

Motorola, Inc. announced that its subsidiary, MI, Inc., has successfully completed its tender offer to acquire a controlling interest in Vertex Standard Co., Ltd. of Japan, a global provider of 2-way radio communication solutions.  The tender offer period expired on January 15 with 5.4 mln shares tendered and accepted.

Following the settlement of the tender offer for 12.0 bln Yen in cash and starting on January 22, 2008, Motorola will have a total ownership stake of approximately 78% of Vertex Standard on a fully diluted basis (excluding certain stock acquisition rights that are scheduled to be cancelled), while Tokogiken Co., Ltd., a privately held Japanese company controlled by Vertex Standard’s president and CEO Jun Hasegawa, will retain a 20% stake.  Through a subsequent restructuring process Motorola will own 80% of Vertex Standard. As announced on November 5, 2007, Motorola launched the tender offer in cooperation with Tokogiken with the intention of forming a joint venture to develop and sell Vertex Standard branded products and develop select Motorola branded products. All regulatory clearances required for the completion of the transaction have been obtained.

The joint venture is expected to expand and develop a comprehensive suite of products to address the rapidly growing demand for 2-way radio solutions. Vertex Standard’s strength in the Amateur, Marine and Airband (Avionics) segments provides Motorola with access to new business opportunities. In addition, Vertex Standard’s solutions are highly complementary with Motorola’s products and add greater depth and breadth to Motorola’s Government and Public Safety business. The venture also provides additional engineering talent for Motorola.