[Ccarc] Motorola-Yaesu deal

[Tom Murray]

Motorola to Acquire Controlling Interest in Parent Company of Yaesu



According to a press   release issued by Motorola, Motorola USA has announced its   intention to "launch a tender offer to acquire a controlling interest in Vertex Standard Co., Ltd." Vertex   Standard is the parent company of Yaesu.
Upon successful completion of the tender offer and subsequent
restructuring process, Motorola will own 80 percent of Vertex Standard;
Tokogiken, a privately held Japanese company, controlled by current
president and CEO of Vertex Standard Jun Hasegawa, will retain 20
percent, forming a joint venture. The total purchase price for 80
percent of the outstanding shares on a fully diluted basis will be
approximately ¥12.3 billion (approximately US $108 million). The bid
will start November 6 and end on December 26. If the bid succeeds,
shares of Vertex would be delisted from the Jasdaq Securities Exchange
in Japan.
According to Dennis Motschenbacher, K7BV, Yaesu's Executive
Vice President for Amateur Radio Sales in North America, "I thought
that the happiest and proudest day of my 45-plus years in Amateur Radio
was when I was offered the opportunity to lead the Yaesu North American
sales effort; however, being able to now announce this news to my
fellow Amateur Radio operators takes over as the top life thrill for
me! I am certain the good fortune that put me in this leadership chair
at Yaesu now promises opportunities for me to do more for the
technological future of Amateur Radio than I ever dreamed possible. I
do not pretend to know the full extent of the positive impact this
Motorola/Vertex Standard business arrangement will have on Amateur
Radio -- I just know it is going to be terrific for all of us who love
Amateur Radio for its public service and entertainment value, as well
as its potential for us to make lifelong friendships in our
neighborhoods and around the world."
Saying that hams should not expect to see a line of Motorola Amateur
Radio products, Motschenbacher said he sees the joint venture between
Motorola and Vertex Standard "as a very good thing for Amateur Radio in
general and Yaesu customers in particular. I hope our loyal customers
will readily see this business venture for what it is, an opportunity
to make a solid 50-plus year old Yaesu company even stronger and more
formable than is already the case. There is absolutely no reason to
have the slightest concern about equipment warranties and the
continuation of support for our products. I am really excited to see
what the joint engineering capabilities of these two huge
communications companies will bring in the way of new technology
advancement for the Amateur Radio service."
Motorola said that the joint venture "will develop and sell Vertex
Standard branded products and develop select Motorola branded products.
The Motorola brand will continue to focus on higher featured, higher
tier products and continue to utilize existing Motorola distribution
channels. Vertex Standard's strength in the Amateur, Marine and Airband
(Avionics) segments will also provide Motorola with access to new
business opportunities. In addition, Vertex Standard's solutions are
highly complementary with Motorola's products and will add greater
depth and breadth to Motorola's Government and Public Safety business."
According to Hasegawa, "The joint venture will give Vertex Standard
access to Motorola's global distribution channels, presenting
considerable opportunities for Vertex Standard to drive growth. We also
expect to reduce costs, as we will benefit from Motorola's global scale
and resources. With Motorola, Vertex Standard will be stronger and
better positioned to deliver new and innovative 2-way radio solutions
for professionals and consumers around the world."
Motschenbacher said, "There is a unique aspect of business that
comes with Amateur Radio. It's not just about a radio. It's the
relationship between the ham, the radio itself and the company that
makes that radio. This relationship in Amateur Radio is far different
than it is, say, between a buyer of a HDTV, the TV and the TV
manufacturer. The relationship in Amateur Radio is far more personal
and "bonding", per se. I am certain that we will do our utmost to
ensure that Motorola understands this delicate bond. Since Motorola is
leaving the day-to-day management of Yaesu in the hands of my boss, Jun
Hasegawa, President of Vertex Standard, we can expect our longtime
relationship with hams to remain intact."
Calling the joint venture "a good thing," Motschenbacher said,
"Before working in the business side of Amateur Radio, my old business
partner and I purchased a number of small companies in our line of
business. More often than not, we found that bringing these new
acquisitions into our existing family of companies added more to the
overall success of the total group than expected. Therefore, I believe
that this joint venture is not just a 1 + 1=2 equation -- I am positive
that the outcome for our Amateur Radio customers is going to feel more
like 1+1= 3 and that's a good thing!"



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