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Motorola Buys WatchGuard, Expands Mission-Critical Ecosystem

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Motorola Solutions, Inc. (MSI - Free Report) recently announced that it has acquired WatchGuard, Inc. — a leading provider of mobile video solutions for law enforcement — for an undisclosed amount. The move augments the communications equipment maker’s mission-critical ecosystem.

Headquartered in Allen, TX, WatchGuard manufactures in-car video systems and body-worn cameras along with evidence management software. The firm’s market-leading solutions facilitate law enforcement users to capture, store and share high-quality video evidence for expediting the judicial process.

Markedly, the buyout leverages Motorola’s global footprint and adds new capabilities to its video security solutions portfolio, which includes fixed cameras and advanced analytics from Avigilon as well as license plate recognition cameras and software from Vigilant Solutions.

As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue source from this niche market. It aims to fortify its position in the public safety domain by working with other players in the ecosystem.

The company is poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment, and favorable global macroeconomic environment. Its competitive position along with an attractive portfolio for large addressable market augurs well for future growth.

Motorola has long-term earnings growth expectation of 7.7%. Led by strong demand across its platforms, the stock has rallied 41.6% compared with the industry’s growth of 2.2% in the past year.



Motorola currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. (CMTL - Free Report) , Ubiquiti Networks, Inc. and Ericsson (ERIC - Free Report) . While Comtech and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Ericsson carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech has long-term earnings growth expectation of 5%.

Ubiquiti has long-term earnings growth expectation of 19.8%.

Ericsson is currently trading with a forward P/E of 24.7X.

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