WASHINGTON: Wireless product company Zebra Technologies will acquire enterprise business of Motorola Solutions for $ 3.45 billion in an all-cash deal.

"This acquisition will transform Zebra into a leading provider of solutions. It positions Zebra as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing," Zebra's Chief Executive Officer Anders Gustafsson said in a statement.

Zebra, which recorded sales of $ 1 billion in 2013, provides technology solutions like barcodes, smart tags that are used for asset or product tracking in places like shopping malls, hospitals etc.

The acquisition will be funded through about $ 200 million of available cash on hand and $ 3.25 billion that is fully committed to be raised through a new credit facility and the issuance of debt securities, the statement said.

The deal was approved by the Boards of Directors of both companies and is subject to customary closing conditions including regulatory approvals.

It is expected to be completed by the end of 2014. The combined entity will have sales of about $ 3.5 billion.

"This transaction will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers," Motorola Solutions chairman and CEO Greg Brown said.

Approximately 4,500 employees are expected to join Zebra upon completing this transaction.

Motorola Solutions will continue to manufacture, design, integrate and deliver voice and data communication solutions for government and public safety customers worldwide, the statement said.

Through this transaction, Zebra will enter the segment where Motorola's enterprise business competes and strengthen its position in industries including retail, transportation and logistics and manufacturing and serve about 95 per cent of the Fortune 500 companies.

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