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EXHIBIT 99.1
For immediate release
SYMBOL TECHNOLOGIES COMPLETES ACQUISITION OF TELXON
HOLTSVILLE, N.Y., Dec. 1, 2000 -- Symbol Technologies (NYSE: SBL) announced
that its acquisition of Telxon (NSDQ:TLXN) in a stock-for-stock merger was
completed after the close of business last night. The acquisition creates a
global leader in wireless handheld computing systems across many industries and
vertical applications.
Under the terms of the agreement, Telxon shareholders will receive 0.50 of
a share of Symbol common stock for each share of Telxon common stock. As a
result, Symbol will issue approximately 8.8 million new common shares to
existing Telxon shareholders and reserve up to an approximate 1.7 million shares
to cover stock options with an average post-merger exercise price of
approximately $28 per share. Also, Telxon has $24.4 million principal amount
outstanding of convertible debentures with a post-merger conversion price of
$53.50, and $82.5 million principal amount outstanding convertible notes with a
post merger conversion price of $55.00 per share.
Telxon's business will be operated as a wholly-owned subsidiary although
portions of its operations will be consolidated with Symbol in order to obtain
operating efficiency and synergy of at least $75 million annually from
eliminating duplicate functions, rationalizing manufacturing facilities and
sales offices and realizing purchasing, sales, manufacturing and other
efficiencies.
Before one-time transaction costs, the acquisition is expected to be
approximately neutral to Symbol's earnings per share in 2001 and significantly
accretive thereafter as the synergies and efficiencies are realized.
Symbol Technologies, Inc., winner of this year's National Medal of
Technology, is a global leader in mobile data transaction systems, providing
innovative customer solutions based on wireless local area networking for data
and voice, application-specific mobile computing and bar code data capture.
Symbol's wireless information appliances connect the physical world of people on
the move, packages, paper and shipping pallets, to information systems and the
Internet. Today, some 10 million Symbol bar code scanners, mobile computers and
wireless LANs are utilized worldwide in markets ranging from retailing to
transportation and distribution logistics, manufacturing, parcel and postal
delivery, government, healthcare and education.
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Symbol's systems and products are used to increase productivity from the factory
floor to the retail store, to the enterprise and out to the home. Information
about Symbol is available at www.symbol.com and 1-800-722-6234.
This news release contains forward-looking statements based on current
expectations, forecasts and assumptions that involve risks and uncertainties
that could cause actual outcomes and results to differ materially. These risks
and uncertainties include price and product competition, dependence on new
product development, reliance on major customers, customer demand for our
product and services, control of costs and expenses, international growth,
general industry and market conditions and growth rates and general domestic and
international economic conditions including interest rate and currency exchange
rate fluctuations. For a further list and description of such risks and
uncertainties, see the reports filed by Symbol with the Securities and Exchange
Commission. Symbol disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
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For financial information: For press information:
Kenneth Jaeggi Doug Picker
Symbol Technologies, Inc. Symbol Technologies, Inc.
631-738-3909 631-738-4699
