Acquiring defence tech firm Silvus for $4.4 billion, Motorola aims to boost secure communications and expand its global public safety footprint.
Motorola Solutions has announced plans to acquire US-based defence communications company Silvus Technologies in a deal worth $4.4 billion. The agreement, which is all-cash, is expected to close by the end of 2025. An additional $600 million may be paid to Silvus, depending on its financial performance through 2027 and 2028.
According to a report by Manufacturing Dive, the acquisition will strengthen Motorola’s presence in the defence and public safety technology sector. Silvus specialises in mobile ad-hoc network (MANET) technologies that support secure, high-bandwidth communications without the need for fixed infrastructure. These are used in military and law enforcement operations.
The acquisition will also enable Motorola to leverage Silvus’ expertise in radio frequency sensing and mesh data networks, which are specifically designed for congested, high-risk environments.
Greg Brown, chairman and CEO of Motorola, indicated that the deal would strengthen the company’s dedication to safeguarding communities, enhancing border security, and addressing evolving threats.
Silvus, based in Los Angeles, is projected to generate $475 million in revenue this year with an adjusted earnings margin of 45 per cent. It was previously owned by private equity firm TJC LP. Motorola believes the acquisition will enhance its earnings within a year and help it reach a broader global customer base through combined engineering resources.
The company shifted its focus to public safety after selling its mobile phone division to Google in 2012. It has since experienced consistent growth. Its first quarter sales this year reached $2.5 billion, up 6 per cent from last year and more than double the Q1 figure from 2015.
However, trade tariffs are pressuring Motorola’s costs, with a projected $100 million impact this year. The firm is working to mitigate these effects through supply chain adjustments and efficiency enhancements.
