Divestiture Of Navis
bra Technologies Announces Divestiture of Navis
Company to focus on core printing, RFID and location solutions
Lincolnshire, IL, January 31, 2011- Zebra Technologies corporation (NASDAQ: ZBRA today announces that is has entered into a definitive agreement to sell its Navis business to Cargotec Corporation (NASDAQ" OMX Helsinki: CGCBV for approximately $190 million in cash. The transaction is expected to be completed during the first quarter of 2011, subject to regulatory approvals, customary closing conditions and working capital adjustments. Management estimates that the sale will results in an after-tax gain of $30-$40 million, which will be recorded in the period in which the transaction competed.
The transaction also includes certain business
operations serving marine terminal customers that comprised a small
part of Zebra's 2007 acquisition of WhereNet, including the WhereNet
Marine Terminal Solution product line. All other elements of WhereNet,
such as real time location, tags and readers, will remain with
"Following the sale of Navis, Zebra will benefit from a sharper focus on its core business to driver consistent long-term growth, extend industry leadership and deliver greater returns to shareholders," said Anders Gustafsson, Zebra's Chief Executive Officer. "Our suite of products, solutions and technologies positions Zebra as the innovation leader in asset tracking with specialty printing, RFID, and real-time location solutions that can be applied to solving customer challenges across a broad range of industries and applications. This commitment to our core business will enable us to better direct our resources to those activities that offer the highest risk-adjusted returns, included returning capital to shareholders through our share repurchase program."
Based on a strategic review of its business, the company determined
that the highly industry-specific nature of Navis limited its
application in other industries and was insufficiently aligned with
the core business. Navis is a leading global solutions provider of
operating systems to coordinate and automate the planning and
management of container and equipment moves in marine terminals and
other complex and demanding business environments.
Mr. Gustafsson continued, "We will continue to drive profitable
growth through global expansion in under-served regions, investing in
product and channel development, and building stronger customer
relationships through large system integrators and independent
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About Zebra Technologies
Zebra Technologies Corporation (NASDAQ: ZBRA) provides the broadest range of innovative technology solutions to identify, track, and manage the deployment of critical assets for improved business efficiency. Zebra's products include reliable on-demand printers and state-of-the-art software and hardware solutions utilizing a wide array of automatic identification technologies. By enabling improvements in sourcing, visibility, security and accuracy, Zebra helps its customers to put the right asset in the right place at the right time. Zebra serves more than 90 percent of Fortune 500
For more information about Zebra's solutions, visit http://www.zebra.com.
To the extent that this news release discusses expectations about the proposed sale or otherwise makes statements about the future, including with regard to Zebra's future growth and financial performance, such statements are forwardlooking, as defined by the Private Securities Litigation Reform Act of 1995, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made herein. These factors include the risk that the proposed sale may not be completed and that Zebra may not perform at the level of current expectations. Other risks, uncertainties and other factors that could affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra's Form 10-K for the year ended December 31, 2009, and in the company's subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.