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is buying embedded computing specialist Force Computer
from Solectron for an undisclosed sum.
Big Box Strategy | In the hotel industry, there is a preponderance ::
These brands follow a practice I refer to as Big Box Strategy. and with strong brands, in some extremely small markets; in these cases, in cities with
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A spokesman for Milpitas, Calif.-based Solectron was not immediately
available for comment, but in a statement, the outsourced electronics manufacturer said the Force
Computer sale is part of its "plan to sell assets that are not central to
the company's future strategy."
Force Computer components are used in a wide range of
applications, including networking gear, industrial machinery, medical
imaging tools and radar systems. According to Motorola spokesman Jeff Madsen,
the acquisition fits into the
Schaumburg, Ill., company's overarching plan, which seeks to connect users
to voice, media and data on any platform at home, work or in their cars.
"To make that a reality, a lot of different technologies behind the scenes
are essential," Madsen said.
New CEO Ed Zander, a former Sun Microsystems executive, plotted
Motorola's corporate direction, which needs some reinvigoration
after several disappointing quarters of
handset sales compared to rivals Nokia and Samsung.
Besides mobile phones and embedded computing, other pieces of the
connectivity puzzle include semiconductors, automotive technologies
(including GPS and telematics) and telecom, TV and broadband products -- all
areas Motorola has devoted a business group to.
In addition, Motorola is working with standards groups to develop recognized
standards that will support the development of new applications and the
interoperability of networked devices.
The Force Computer acquisition deal will close during the third quarter,
pending regulatory approval. Provided it does, the unit will be folded into
the Motorola Computer Group (MCG), which does similar work.
For Motorola, the Force Computer acquisition will significantly expand its
presence. MCG is based in Tempe, Ariz., and has facilities in Southborough,
Mass., as well as China, India and the United Kingdom. It has 1,000
employees.
Force Computer has about half as many workers at its Fremont, Calif.,
headquarters and offices in Germany, India and Scotland.
Madsen said Force Computer employees will be offered jobs with MCG. Senior
managers from both companies will meet to discuss the possibility of
consolidating facilities and whether the Force Computer name will be
retained.
More details about Motorola's company-wide strategy will be discussed at its
analysts day next month.
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