Motorola Sells Portion of Government Fuze Business While Keeping Its Employees First Priority.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 15, 1997--Motorola Space and Systems Technology Group (SSTG SSTG Ship Safe Training Group Ltd (Kent, UK)SSTG Space and Systems Technology Group (Motorola) SSTG Ships Service Turbine Generator SSTG Ship Service Turbo Generator ) signed a letter of intent (LOI LOI Letter of Indemnity (international trade and carriage business) LOI Letter Of Intent LOI Loss On Ignition LOI Letter of Inquiry LOI Lack Of Information LOI Lack of Interest LOI Letter of Invitation LOI List Of Items ) with Hopkins, Minn.-based Alliant Techsystems Alliant Techsystems NYSE: ATK is a major US aerospace and defense contractor with sales of approximately USD $3.6 billion (fiscal year 2007) [1] and strong positions in propulsion, composite structures, munitions, precision capabilities, and civil and sporting , which details the selling of a portion of Motorola's Tactical Systems Operations (TSO (Time Sharing Option) Software that provides interactive communications for IBM's MVS operating system. It allows a user or programmer to launch an application from a terminal and interactively work with it. The TSO counterpart in VM is called CMS. ) business unit responsible for the design and development of military fuzes for the U.S. government. Annual sales of Motorola's TSO business unit is approximately $45 million. The estimated value of this business transaction is $12 million in cash plus additional considerations and future royalties. Stipulated in the LOI, Alliant Techsystems will purchase Motorola's penetrator fuzing, projectile projectile something thrown forward. projectile syringe see blow dart. projectile vomiting forceful vomiting, usually without preceding retching, in which the vomitus is thrown well forward. fuzing, proximity sensors and fuzing, and electronic safe and arming device businesses. Current plans call for Motorola to exhaust its existing fuze fuze n. & v. Variant of fuse1. Noun 1. fuze - any igniter that is used to initiate the burning of a propellant fuse, primer, priming, fuzee, fusee backlog and not to pursue any fuzing business that may result in a backlog extension beyond the year 1999. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Durrell Hillis, senior vice president and general manager of Motorola SSTG, "Motorola has been a major participant in U.S. fuzing development and production over the past four decades. However, as a future growth engine for the company, we are constantly in the process of reevaluating all of our business areas. This decision was made to focus our future efforts in becoming a market leader in advanced communications systems." The majority of employees currently working on these government fuze programs will remain Motorola employees. However, Alliant Techsystems will have the opportunity to actively recruit some Motorola employees with particular technology expertise and skills to help ensure the future success of the business. In the interim, Motorola services will be subcontracted to Alliant Techsystems until contract completion. This will provide for a "seamless" transition to Alliant Techsystems of government fuze programs presently contracted to Motorola, as well as providing our government customer critical continuity with Alliant Techsystems. Ken Fredericks, vice president and director of Motorola SSTG human resources stated, "The welfare of our employees is our first and primary consideration. Alliant Techsystems proved to be an excellent company that offers similar benefits to Motorola. This agreement is truly a win-win situation for everyone." Motorola (NYSE NYSE See: New York Stock Exchange :MOT) is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Major equipment businesses include cellular telephones, two-way radios, paging and communications, personal communications, automotive, defense and space electronics and computers. Communications devices, computers and millions of consumer products are powered by Motorola semiconductors. Sales in 1996 were $28 billion. CONTACT: Motorola SSTG, Scottsdale Robert Edwards, 602/441-2885 Email: Robert_Edwards@Email.mot.com or Alliant Techsystems, Hopkins Rod Bitz, 612/931-5413 Email: Rod_Bitz@ATK ATK - Andrew Toolkit .com |
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