Motorola Agrees to Acquire IBM’s Share in ARDIS
SCHAUMBURG, Ill. — July 6, 1994 — Motorola, Inc. (NYSE: MOT) and IBM Corp. (NYSE: IBM) announced today that they have signed an agreement in principle under which Motorola would acquire IBM's 50% interest in the ARDIS wireless data network. Terms weren't disclosed.
The agreement will result in Motorola owning all of the four-year- old venture. ARDIS, headquartered in Lincolnshire, Ill., provides radio data communications in more than 400 metropolitan areas. The ARDIS network was the nation's first public wireless packet data network.
Bob Growney, president and general manager of Motorola's Messaging, Information & Media Sector, said the investment in ARDIS "underlines our commitment to the future of the two-way wireless data industry, which is still in its emerging stages.
"To date," Growney said, "ARDIS and its business partners have created wireless data solutions for field organizations, such as service technicians and delivery drivers. We will continue to serve these customers and expand these markets, while establishing new applications on the network with the introduction by Motorola and other vendors of new modems and other products like our Envoy(R) wireless personal communicator. We also are committed to network expansion through continued deployment of our 19.2 kbps RDLAP technology to support the dramatic growth we expect in the market."
"Wireless communications is extremely important and strategic to IBM. We intend to participate by delivering industry-leading products and providing customers with a variety of solutions over wireless networks like ARDIS," said Ellen M. Hancock, IBM senior vice president and group executive. "Our work with ARDIS has helped us learn more about wireless technologies and customer needs, and we will apply this knowledge as we move forward on our strategy to provide the best products and services in the wireless marketplace."
Growney added that "while Motorola is primarily a manufacturer, it has historically made pioneering investments in network operations in order to develop new markets and new products. In the longer term, our strategy calls for the addition of new partners," Growney said.
ARDIS is expected to operate as a separate, independent entity and a wholly owned subsidiary of Motorola. The current ARDIS team, led by Frank Wapole, president and chief executive officer, will continue to manage the company. The transaction is subject to a definitive agreement and regulatory approval.
Motorola is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems and services. Major equipment businesses include cellular telephone, two- way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Communication devices, computers and millions of consumer products are powered by Motorola semiconductors. Motorola's 1993 sales were $17 billion.
CONTACT:
George Grimsrud of Motorola Corporate Communications, 708- 576-2346;
or
Tracy O'Neill of IBM, 914-765-6141