Motorola acquires Blue Wave

Cellular phone maker Motorola today announced a $165m stock merger with Texas-based Blue Wave Systems.

By Chris Holbrook, 21 February 2001 18:05

NEWS Motorola will exchange approximately 6.5 million common shares for Blue Wave, best know for its ComStruct software which speeds digital signals to what Motorola claims is five times faster than traditional methods. Blue Wave, valued at between $135m and $165m under the stock swap deal, will bolster Motorola's computer group which provides embedded equipment for telecommunication OEMs. Motorola also announced today the lay off of nearly 300 workers from its cellular phone unit, mainly from its Chicago location, as it tries to find ways to cut $2bn in costs from its cellular telephone business. Last month, the company cut 2,500 jobs at its manufacturing plant in Harvard and in December last year, 2,870 positions were axed from Iowa, Florida and Ireland.

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