ZBRA - 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 .

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