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Motorola to sell off wireless LAN business

by on21 October 2013

Killed off by Cisco

Motorola is exploring the sale of its underperforming wireless LAN business. The company has been unable to compete with the likes of Cisco, HP, Ubiquiti and Aruba and wants to focus on its government and other enterprise customers.

The company thinks that the market is too tough and it is being squeezed from the top by Cisco and from the bottom by Ubiquiti. Motorola unit's revenues declined by a mid-single digit percentage point in the second quarter. The business had $216.7 million in 2012 revenues, roughly 8 percent of the $2.71 billion enterprise business.

However the global enterprise wireless LAN business is expected to be a $4 billion market for 2013, but appears that most of that cash is going to Cisco. Motorola Solutions, which has a market value of just over $16 billion, dominates the two-way radio market.

The attempt to shed the wireless LAN unit follows other divestitures Motorola Solutions has undertaken since 2011. The company sold its wireless network assets to Nokia Siemens Networks for $975 million in 2011.

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