Motorola Solutions To Buy $750 Mln Of Its Common Stock From ValueAct

(RTTNews) - Motorola Solutions, Inc. (MSI) Wednesday said it has entered into a stock purchase agreement with ValueAct Capital Master Fund, L.P. to buy 11.32 million shares of its common stock at a price of $66.26 per share, with a value totaling about $750 million.

The company's purchase of the shares was made as part of Motorola Solutions' existing $12 billion stock repurchase program.

Greg Brown, chairman and CEO, Motorola Solutions, said, "This transaction is an indication of our confidence in the business. It's also consistent with our stated intention to return the proceeds from the recent sale of our Enterprise business to shareholders in a timely manner."

ValueAct Capital has not participated in Motorola Solutions' ongoing repurchase plan, and as a result its ownership of the company has increased by more than 30 percent over the past several years.

Bradley Singer, partner at ValueAct Capital and member of Motorola Solutions' board of directors, said, . "... As part of the $5 billion share repurchase plan increase, the sale of our shares back to the company enables ValueAct Capital to both help accelerate the capital return to shareholders and proportionally size our ownership stake. We currently intend to maintain our position as one of the company's largest shareholders."

Following the completion of the purchase, ValueAct Capital will own around 7.8 percent of Motorola Solutions' common stock, and Singer will continue serving his term as ValueAct Capital's representative on the company's board of directors.