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Motorola (MSI) Boosts Portfolio With 911 Datamaster Buyout

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Motorola Solutions, Inc. (MSI - Free Report) recently augmented its command center solutions portfolio with the acquisition of 911 Datamaster, Inc. for an undisclosed amount. The buyout is likely to reinforce its position as a leading provider of mission-critical communication products and services worldwide.

Based in Overland Park, KS, 911 Datamaster deploys critical 9-1-1 data systems with scalable solutions and requisite software support for standardized interfaces for emergency calls and message services. In addition, it offers support for Next Generation 9-1-1 (NG9-1-1) networks that have replaced the existing narrowband, circuit-switched 9-1-1 networks, which carry only voice and very limited data. The location services of NG9-1-1 provide precise positioning of emergency calls to enable faster response from first responders.

Various studies have revealed that about 240 million calls are made to 9-1-1 in the United States on an average each year, 80% of which are mostly initiated from wireless devices with no fixed location. Consequently, it becomes imperative to identify accurate locations of distress calls to provide prompt emergency services.

The acquisition will facilitate Motorola to boost its organizational workflows as it aims to migrate to NG9-1-1 technologies. This, in turn, will help to improve its technical capabilities to provide interactive text messaging and policy-based routing using location for better emergency support services.

Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.

Motorola intends to fortify its position in the public safety domain by entering into alliances with other players in the ecosystem. It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. Its competitive position, along with an attractive portfolio for a large addressable market, augurs well for long-term growth.

The stock has gained 53.7% over the past year compared with the industry’s growth of 25.1%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.

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A better-ranked stock in the industry is Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered an earnings surprise of 50.8%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 173.2%.

Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. It has a long-term earnings growth expectation of 15.3% and delivered an earnings surprise of 11.2%, on average, in the trailing four quarters.

Earnings estimates for the current year for the stock have moved up 35.4% over the past year. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.

Sierra Wireless, Inc. carries a Zacks Rank #2. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.

Over the past year, Sierra Wireless has gained 12.3%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.


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