Motorola to sell government systems unit to General Dynamics

Motorola to sell government systems unit to General Dynamics
FALLS CHURCH, Va. -- In a move to sharpen its focus on core semiconductor and mobile communications businesses, Motorola Inc. has agreed to sell its defense and governments systems group to General Dynamics Corp. The purchase is for $825 million in cash and General Dynamics' assumption of certain liabilities and ongoing obligations.

Based in Scottsdale, Ariz., the Motorola Integrated Information Systems Group has 3,000 employees. It provides defense and government customers with technologies, products, and systems for secure and integrated communications. The group is expected to have revenues of $830 million in 2002.

"As Motorola increases its focus on business areas central to its long-term strategy, we feel certain that General Dynamics, with its strong government focus, will be the right home for Integrated Information Systems' employees," said Christopher B. Galvin, chairman and CEO of Motorola.

The transaction has been approved by the boards of directors of both companies and is subject to normal regulatory approval. The purchase is expected to close within 60 days.