Zebra Technologies to pay $360M to Honeywell in patent settlement
Zebra Technologies (NASDAQ:ZBRA) disclosed Thursday it agreed to pay $360M to Honeywell (NASDAQ:HON) for past damages as part of a license and settlement agreement to resolve all patent-related litigation between the two companies.
Zebra (ZBRA) said the payment will be charged to its Q2 earnings and will be paid in equal quarterly installments over eight quarters.
The companies also entered into a royalty-free cross-license with respect to each side's existing patent portfolios for the lives of the licensed patents, according to the 8-K filing.
Zebra Technologies (ZBRA) shares are "trading at a cheap valuation considering the high quality of the business," Stock Metal Investment writes in a bullish analysis published on Seeking Alpha.