Private equity firm Silver Lake moved to extend a strategic partnership with Motorola Solutions (NYSE: MSI) by pledging another $1B investment in the mission-critical communications platforms provider.
Silver Lake will buy 1.75 percent convertible senior unsecured notes that are due in September 2024 and have an initial conversion price of $203.50 per share as part of the new agreement, Motorola said Thursday.
Motorola added that it will settle its $800M aggregate principal investment by paying Silver Lake approximately $1.1B in cash and issuing about 5.5M shares. The settlement is equivalent to 2 percent convertible notes set to mature in 2020.
Managing Partners Greg Mondre and Egon Durban of Silver Lake will continue to serve on Motorola’s board.
“Motorola Solutions is a great company that has evolved into a leading mission-critical technology platform addressing the societal challenge of public safety. … The company is positioned for continued growth with exciting new opportunities across its mission-critical communications, command center software and video analytics platform offerings,” Mondre and Durban said in a joint statement.
Goldman, Sachs & Co. and Wachtell, Lipton, Rosen & Katz respectively served as Motorola’s financial and legal advisers in the transaction. Simpson Thacher & Bartlett advised Silver Lake on the deal’s legal aspect.
In 2015, Silver Lake signed a $1B strategic partnership and investment agreement with Motorola in an effort to accelerate the availability of “smart” public safety communication systems.