Motorola acquires video-processing solutions company to advance video infrastructureMotorola, Inc. announced on Monday that the company has signed a definitive merger agreement with Terayon Communication Systems, Inc, in which Motorola will buyout all outstanding shares of the latter company. Motorola says it will pay the $1.80 per share in cash, totaling approximately $140 million.According to a press release, the integration of Terayon software-driven application solutions will provide Motorola with video-processing solutions that will allow Motorola to take advantage of digital advertisement insertion, motion and graphical overlays, channel branding, and channel line-up solutions.
Motorola’s Connected Home Solutions, the division that manufacturers set-top tuners, reported record sales for the third year in a row. While Terayon intellectual property will become part of the Motorola portfolio, the ad-targetted technologies will almost certainly end up in future set-top tuners.
This is not the first time Motorola is swimming in the video infrastructure pool. The company already offers equipment, being the number one seller of set-top cable receivers. Motorola also acquired Broadbus late last year, in order to offer wireless video capabilities.
Terayon will become a wholly-owned subsidiary of Motorola at the end of the transaction, which is expected to be completed in the second or third quarter of 2007 and is subject to customary closing conditions, such as stockholder approvals. The company stated that it will maintain Terayon's operations in Santa Clara, CA.