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Motorola buys Lucent unit
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December 21, 1998: 1:53 p.m. ET
Deal covers consumer wireless handset facility, including employees
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NEW YORK (CNNfn) - Motorola Inc. has acquired the research and product development portion of Lucent Technologies' wireless handset facility in Piscataway, N.J., the Libertyville, Ill., company announced Monday.
Terms weren't disclosed, but a Motorola spokesman said the price tag was significantly lower than the $100 million-$200 million figure reported in the Wall Street Journal's Monday editions.
The move is intended to bolster Motorola's effort to use digital technology for new wireless communications products.
As part of the transaction, the majority of Lucent (LU) employees working at the facility will go to work for Motorola (MOT), the company announced.
"Motorola's purchase signifies its strong commitment to technological innovation," said Fred Kuznik, president of the company's personal communications unit. "Motorola is a market driven provider of technology and is committed to serving the various needs of its global customers."
The Journal said that about 300 Lucent employees will move over to Motorola as part of the transaction. Lucent has been trying to shed certain businesses since a joint venture with Philips Electronics NV (PHG) ended unsuccessfully in October, according to the Journal.
"It's a win for Lucent and for Motorola," James Parmalee, a Credit Suisse First Boston analyst told the Journal. "And it allows Lucent to seamlessly divest a business they have wanted to get rid of."
Motorola stock was up 1-1/2 to 60-3/8 in afternoon New York Stock Exchange trading. Lucent shares were up 4-11/16 to 103-1/16. 
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