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Motorola Ups the Game With the Acquisition of IndigoVision

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Motorola Solutions, Inc. (MSI - Free Report) completed the acquisition of IndigoVision. Based in Edinburgh, Scotland, the acquiree develops video security solutions, including cameras, video management software, encoders and storage devices. The move underscores the Chicago, IL-based mission-critical communication solutions provider’s investment in video security and analytics for competitive advantage.

Motorola aims to become a leader in the next-generation video security solutions market. Complementing the company’s video portfolio, which includes fixed cameras, in-car and body-worn cameras and advanced analytics and software, IndigoVision’s products will provide greater go-to-market reach across a broader customer base.

IndigoVision’s end-to-end offering, global position and customer base will contribute to Motorola’s growing presence in video security and analytics. Motorola’s shares have more room to run once this integration begins to uncover synergies. The company’s solutions coupled with a healthy balance sheet provide it solid foundation to navigate this dynamic environment.

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

Recently, Motorola announced its Private Broadband for Critical Infrastructure solution, making it the only technology provider with end-to-end communications offering spanning voice, data, video and IoT across interoperable land mobile radio and LTE networks. This follows the Federal Communications Commission’s ruling to realign the 900 MHz band to increase capacity for broadband use.

The company is well positioned to benefit from organic growth, acquisition initiatives and disciplined capital allocation. Its competitive position along with an attractive portfolio for a large addressable market augurs well for future growth.

Motorola has a trailing four-quarter positive earnings surprise of 8.6%, on average. The stock has lost 11% compared with 3.3% decline of the industry in the past six months.



Motorola currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are Ooma, Inc. (OOMA - Free Report) , Acacia Communications, Inc. and Chegg, Inc. (CHGG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.

Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

Chegg has a trailing four-quarter positive earnings surprise of 49.9%, on average.

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