To: Moonray who wrote (15388 ) 5/13/1998 11:19:00 AM From: David Lawrence Read Replies (4) | Respond to of 22053
Wow! MOT --> CPATH deal dies. MOT to close facility. Another one bites the dust. HUNTSVILLE, Ala., May 13 /PRNewswire/ -- Motorola's Information Systems Group (ISG) today announced that the sale of its Transmission Products Division (TPD) will not be completed despite an earlier announcement that Motorola had entered into an agreement with an international group of investors. Motorola is disappointed that the investor group did not complete the purchase as agreed. The lead investor stated his group was unable to proceed further with this transaction "due to a lack of cohesion on the part of the Buyer's Group." This transaction would have resulted in the launch of CPATH, Inc. Without the participation of this investor, the group could not complete the purchase as agreed. Because of this unexpected development, Motorola is now forced to close its facility in Huntsville, Alabama during July 1998. "We will offer assistance for our people who have worked with us during this difficult period," said Rick Lane, general manager of TPD. "Motorola will provide resources for all associates, including relocation opportunities, outplacement assistance and counseling." Motorola will transfer customer service and support for its SURFR Series -- analog and digital modem product lines to ISG's headquarters in Mansfield, Mass. and will make every effort to make this transition invisible to its customers. Existing commitments regarding warranties and customer programs will continue to be met. Motorola's Information Systems Group (ISG) develops, builds and markets solutions that help customers profit from the power of multimedia business and personal communications. Product families include cable, corporate and software modems and a broad range of internetworking equipment. ISG is part of Motorola's Messaging, Information and Media Sector (MIMS). ISG information is available on the world wide web at www.motorola.com/isg. Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Motorola semiconductors power communication devices, computers and millions of other products. Motorola's 1997 sales were $29.8 billion.