Motorola Solutions, the leading global provider of innovative mission-critical communications solutions for public safety and commercial customers, has announced that Silver Lake will make a $1 billion investment to the company, according to a press release issued by Motorola Solutions.
Motorola Solutions is expected to use the investment to accelerate its growth.
The company is planning to boost its services and its business in smart public safety solutions, according to the press release.
They plan to do this through partnerships, acquisitions, and investment.
Greg Brown, chairman and CEO of Motorola Solutions, said in the press release that Silver Lake will play an important role in achieving this growth.
"This strategic partnership and investment combine Silver Lake's expertise in technology products, services and information solutions with our vision to create safer communities and more successful businesses," he said. "It represents a strong vote of confidence in our company's strategy and future growth opportunities."
Once the transaction closes, which is expected to occur on the third quarter of 2015, Silver Lake's managing partner, Egon Durban and Greg Monroe, will be appointed to Motorola Solutions' board of directors, according to the press release.
Brown welcomes the addition of Durban and Monroe to their board.
He said in the press release that the addition of Durban and Monroe provides their company "with valuable insight and expertise as we grow through new partnerships, investments and acquisitions."
Reuters adds that Motorola Solutions have been aggressively cutting their costs to offset the dip in their sales.
The company has been affected by the recent cuts in budget from several government agencies, including the police and fire departments.
They are Motorola Solutions' major customers, according to Reuters.
Silver Lake will be purchasing $1 billion aggregate principal amount of 2.0 percent convertible senior notes due 2020 with an initial conversion price of $68.50 per share, under the terms of the investment, according to the press release.
Reuters adds that the $1 billion investment is Silver Lake's biggest ever.
