Motorola Solutions bolsters communications segment with $4.4 billion deal for Silvus

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(Reuters) -Motorola Solutions said on Tuesday it would acquire wireless-radio maker Silvus Technologies for $4.4 billion as the safety equipment maker looks to bolster its position in the market and take advantage of rising demand.

The acquisition could help Motorola develop and improve its communications hardware to meet high orders for devices such as radios amid rising geopolitical tensions and regional conflicts.

Under the terms of the deal, Silvus has the potential to receive an earn-out of up to $600 million based on its business performance over twelve-month periods ending in 2027 and 2028.

The buyout is expected to close in the third or fourth quarter of this year.

Founded in 2004 and headquartered in Los Angeles, Silvus Technologies makes advanced wireless communication systems for mission-critical applications such as military and maritime operations.

Silvus’ investments in integrating artificial intelligence into its communications systems have benefited the company as the public sector invests heavily in modernizing military capabilities.

Last month, Motorola launched an AI tool that works with its software to process information and collect data more quickly in order to help first responders save time and react faster during emergencies.

Motorola forecast weak second-quarter profit at the start of the month and flagged higher material costs for the year owing to uncertainty created by a shifting U.S. trade policy.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)