Motorola Solutions (NYSE: MSI), a global leader in public safety and enterprise security, and Silver Lake, a global leader in technology investing, announced they will settle Silver Lake’s outstanding $1 billion 1.75% senior convertible notes. 

The notes, originally scheduled to mature in September 2024, included a provision which gave Motorola Solutions the right to redeem a portion of the notes upon attainment of a specific Motorola Solutions share price over a specific period. Motorola Solutions had previously expressed its intention to potentially exercise this redemption right, and the parties agreed to enter into a purchase agreement to settle the notes. As part of the agreement, Motorola Solutions will pay Silver Lake approximately $1.59 billion in cash to settle Silver Lake’s outstanding convertible notes, inclusive of the conversion premium.

“The Silver Lake partnership has been very successful, and we’ve transformed significantly since we entered into our initial agreement almost nine years ago,” said Greg Brown, chairman and CEO, Motorola Solutions. “We’ve substantially grown revenue and earnings, significantly improved operating cash flow, completed dozens of acquisitions and quadrupled our addressable market. With our management team, our robust safety and security ecosystem and the opportunities in front of us, we’re very well-positioned for continued strong revenue and earnings growth going forward.”

“We are grateful for our partnership with Greg Brown and the entire Motorola Solutions team over the past nine years,” said Greg Mondre and Egon Durban, co-CEOs of Silver Lake. “The remarkable ongoing transformation of Motorola Solutions stands as a testament to his visionary leadership. Greg’s track record of shareholder value creation is nothing short of extraordinary.”

Silver Lake co-CEOs and managing partners, Greg Mondre and Egon Durban, will continue serving on the Motorola Solutions board through the current term, with Greg Mondre expected to be nominated to continue board service.

“I look forward to continuing to work alongside Greg and the rest of the board, and believe the company will continue to create and deliver on exciting opportunities for value creation for many years to come,“ Mondre continued.

Additional information may be found in the Form 8-K that will be filed today with the U.S. Securities and Exchange Commission.