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Motorola (MSI) Boosts Security Portfolio With IPVideo Buyout

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Motorola Solutions Inc. (MSI - Free Report) recently inked an agreement to acquire IPVideo for an undisclosed amount to augment its security offering portfolio. The acquisition has strengthened Motorola’s position in the market as one of the leading providers of security solutions for safer schools, hospitals, hotels and businesses.

Based in Bay Shore, NY, IPVideo has created a niche with its innovative HALO Smart Sensor, a multifunctional safety and security device with built-in vape detection and air quality monitoring, gunshot detection, abnormal noise and motion detection and emergency keyword detection. It helps to improve situational awareness and extend the perimeter of security while protecting privacy in areas where cameras and video security solutions are not suitable for use, such as restrooms, classrooms, hospital rooms and hotel rooms.

The buyout extends Motorola’s end-to-end physical security offering by integrating a non-video threat detection product into its safety and security ecosystem. The introduction of additional detection solutions is likely to help its customers better protect people, property and places from external threats and mitigate security risks.

As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.

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.

It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. Its competitive position and an attractive portfolio for a large addressable market augur well for long-term growth.

The stock has gained 23.1% over the past year compared with the industry’s rise of 10.2%.

Zacks Investment Research
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Zacks Rank & Key Picks

Motorola currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

United States Cellular Corporation (USM - Free Report) , sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve efficiency of government operations.

U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.

Aviat Networks, Inc. (AVNW - Free Report) , presently carrying a Zacks Rank #2, is a solid pick. Headquartered in Austin, TX, Aviat has been a global provider of microwave networking solutions. It offers public and private operators communications networks to cater to the accretive demand for IP-centric, multi-gigabit data services.

Backed by avant-garde technology, Aviat simplifies the entire lifecycle of designing, deploying and maintaining wireless transport networks with greater performance and reliability. The company is well-positioned to benefit from robust market dynamics, cost-reduction efforts, favorable customer mix and higher investments in innovative software solutions. A solid liquidity position and healthy balance sheet are likely to aid the company in executing key long-term strategic objectives.

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