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Motorola Acquires Danish R&D Center

May 8, 2006
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With the deal expected to be closed in early June, Motorola Inc. and BenQ have signed an agreement, under which Motorola will acquire from BenQ a state-of-the-art research and development center, associated development and test equipment, and a team of product development engineers in Aalborg, Denmark. The facility and team will be integrated into Motorola’s Mobile Devices business and become a product development center for the company. The acquisition is an important move in the company’s effort to deliver breakthrough products and experiences that integrate the best internal and partner technologies.


For BenQ Mobile the sale continues its restructuring strategy. In March, it announced its decision to centralize German development activities at its sites in Munich and Kamp-Lintfort/Northrhine-Westphalia and to relocate its R&D employees from Ulm to Munich. Clemens Joos, the company’s CEO, explained, “One of our targets is to streamline operations and to simplify our fragmented product development assignments through the consolidation to major sites. By offloading complexity in R&D, we will be able to more quickly develop new handsets and to launch products earlier in the competitive handset market.”

Located in the ‘Danish Silicon Valley’, the Aalborg facility features state-of-the-art measurement facilities, including antenna, acoustic and radio frequency chambers, environmental laboratories and measuring facilities related to mechanical development. The main facility is currently owned by a Danish Pension Fund and leased to Siemens Real Estate, who in turn leases it to BenQ. Motorola expects to enter into a lease directly with Siemens at closing. As part of the transaction, Motorola will acquire approximately 250 employees, the majority of whom are engineers. As Ron Garriques, president of Motorola Mobile Devices, explained, "This transaction provides Motorola with another highly skilled R&D team and high-tech facility with a proven product track record. This acquisition will enhance Motorola’s capabilities in mobile phone development, software application development and antenna technology. The Aalborg team will support Motorola’s development of innovative new mobile devices that increase our ability to deliver breakthrough products and experiences that integrate the technologies of both Motorola and our strategic partners.”

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