Monday, April 03, 2006

Motorola in automotive electronics sale

Motorola Inc. said Monday it is selling its automotive electronics business to Continental AG.

The German tire company will pay about $1 billion for Motorola's auto electronics business, which generates about $1.6 billion in annual sales.

The unit will join Continental's automotive systems division, which has annual sales of about $6.5 billion.

The deal is expected to close in the first half of this year, pending customary closing and regulatory conditions.

Motorola's automotive unit currently is a component of its Networks & Enterprise business and has nearly 4,500 employees worldwide.

Continental is a supplier of brake systems, chassis components, vehicle electronics and tires. At present it has a worldwide workforce of approximately 80,000.

Schaumburg, Ill.-based Motorola (NYSE: MOT) manufactures a variety of communications devices and has operations here in the Valley.


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