Relying on acquisitions adds risk

Article Excerpt

MOTOROLA SOLUTIONS INC. $139 (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 163.9 million; Market cap: $22.8 billion; Price-to-sales ratio: 3.1; Dividend yield: 1.6%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire vehicles. The company recently acquired privately held VaaS International Holdings, Inc. VaaS, which stands for “video analysis as a service,” makes equipment and artificial intelligence software that scans licence plates and pinpoints the location of a particular vehicle. Law enforcement agencies can then use that data to apprehend suspects and find missing persons. Motorola paid $445 million in cash and stock for VaaS. The operations will add $100 million to current annual revenue of $7.05 billion. The company also paid an undisclosed sum for Avtec Inc. That firm makes systems to let Internet-based voice over internet protocol (VoIP) services connect with traditional two-way radios. Motorola Solutions is still a hold. hold. …