Motorola sells SCG for $1.6bn to Texas Pacific Group

Motorola sells SCG for $1.6bn to Texas Pacific Group
Tom Foremski
Motorola has agreed to sell its Semiconductor Components Group (SCG) for $1.6bn to Texas Pacific Group, spurning a rival offer by current and former Motorola executives who promised job security to about 14,000 workers.
Motorola will retain a 10 per cent minority stake as it sells the unit as part of a major restructuring plan announced last year and moves out of component manufacturing to focus on the more profitable embedded solutions market. The sale is expected to be completed in the second half of this year.
Texas Pacific Group is a private investment partnership that specialises in acquisitions including technology buyouts. Steve Hanson, Motorola senior vice president and general manager of SCG will continue as president, and the current SCG management team and employees of SCG will become employees of the new company. There is no information yet on possible layoffs under the new owners.

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