ZebraTechnologies Corp. will acquire the Enterprise business of Motorola Solutions Inc. for $3.45 billion, adding mobile computing and data-capture technology to its line of bar-code printers and tracking labels.

Zebraplans to fund the deal with about $200 million of cash on hand and $3.25 billion to be raised through a new credit facility and the sale of debt securities, the companies said today in a statement. Motorola Solutions said it will return the proceeds to shareholders, whileZebrasaid the purchase will immediately add to its earnings. The transaction is targeted for completion by the end of this year.

“This acquisition will transformZebrainto a leading provider of solutions that deliver greater intelligence and insights into our customers’ enterprises and extended value chains,” Anders Gustafsson, chief executive officer of Lincolnshire, Illinois-basedZebra, said in the statement.

The combination ofZebraand Motorola Solutions’ Enterprise business would have had pro-forma sales in 2013 of about $3.5 billion, according to the statement. Motorola will be focused on driving mission-critical communications for government and public-safety customers when the deal is completed and about 4,500 of its employees will joinZebra.

Morgan Stanley is financial adviser toZebraon the deal, while Goldman Sachs and JPMorgan Chase & Co. are advising Motorola Solutions.

The sale by Motorola Solutions comes after a review of strategy concluded that “synergies beteween our government and enterprise businesses were not as great as the value we could create by bring singularly focused on our core government and public-safety business,” Motorola Solutions Chief Executive Officer Greg Brown said in the statement.

Motorola Solutions also said today that preliminary first- quarter revenue was $1.8 billion, compared with an average estimate for sales of $1.88 billion in a Bloomberg survey of analysts. The company said it experienced softer demand in North American government business, and lower-than- anticipated enterprise sales.

 

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