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Analysts Laud Motorola-Symbol Deal

Dubbed one of "the most exciting investments in mobile computing and sensing technologies," Motorola's largest acquisition in years " the purchase of RFID and wireless communications company Symbol Technologies Inc. " was hailed by analysts Tuesday.

Motorola said it would plunk down $3.9 billion, or $15 a share in cash, in the deal for Symbol, the Holtsville, N.Y.-based maker of bar-code scanners, Palm OS- and Windows-based handheld computers. Symbol is also widely known for wireless networking and equipment for radio frequency identification technology platforms.

Calling it an exciting investment for Motorola, Dan Mullen, president at AIM Global, an automatic data collection consortium, was markedly upbeat about the prospects for the merged companies. "The most exciting thing is seeing the integration of mobile computing and sensing technologies like RFID and wireless communications," he said. "There's a natural collaboration between these technologies."

ABI Research director Michael Liard said the companies are a good fit. "Symbol has been branding itself as an enterprise mobility company where Motorola is a dominant force," he said. "The two industry giants that have complimentary solutions are coming together."

Motorola has been looking at the RFID space for years from many angles. Liard, who focuses on RFID and contactless technology, said the deal combines wireless mobility and telecommunications and supports the convergence of RFID with other wireless technologies, such as WLANs, WiFi, mobile devices, the 'mobile edge'.

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