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Motorola Solutions (MSI - Free Report) completed the acquisition of the privately held Kodiak Networks in a bid to broaden its software product portfolio. However, the terms of the deal were not revealed.

Notably, the Plano, TX-based Kodiak Networks is a provider of broadband push-to-talk (PTT) for commercial customers. Therefore, this acquisition is a smart move by Motorola as it is in line with existing software portfolio of this Chicago-based company. In fact, the buyout broadened the company’s offerings for mobile network operators, particularly in commercial markets.

Motorola’s WAVE PTT portfolio has been boosted by the acquisition of the PTT firm. The WAVE PTT portfolio connects disparate networks through wireless or wireline broadband, thus allowing smartphones, radios and computers to communicate.

Going forward, the company’s top line is likely to be improved as a result of the expanded product portfolio.

Acquisitions Drive Growth

Motorola is constantly looking to broaden its portfolio through acquisitions. In fact, the Kodiak buyout is not the first move by Motorola to bolster its software portfolio. Toward this end, the company recently inked a deal with Airbus SE to acquire Plant Holdings, Inc., which holds the Airbus DS Communications business. Last year, it had acquired Spillman Technologies with a similar objective.

Additionally, Motorola acquired Wireless Technology Equipment Company to broaden its mission-critical communication services in Florida. Also, it completed the buyout of Airwave Solutions in 2016.

Price Performance

Shares of Motorola have performed well so far this year. The stock has been up 6.5% on a year-to-date basis, as against the industry’s decline of 3.2% in the same period.

 

Zacks Rank and Key Picks

Motorola currently holds a Zacks Rank #2 (Buy). Investors interested in the broader Computer and Technology sector may also consider InterDigital, Inc. (IDCC - Free Report) , ADTRAN, Inc. (ADTN - Free Report) and Juniper Networks, Inc. (JNPR - Free Report) . All these three stocks carry the same bullish rank as Motorola. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

InterDigital has an impressive earnings track record, having surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 15.2%.

ADTRAN has an impressive earnings history, having surpassed the Zacks Consensus Estimate in each of the last four quarters with an average beat of 41.2%.

Juniper Networks’ shares have rallied 18.5% in a year's time.

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