Aiming at deliver of next-generation video services, Motorola (News - Alert) Inc. has agreed to acquire Terayon Communication Systems in a stock transaction valued at $140 million.
Terayon creates video processing solutions that optimize bandwidth and enable content to be delivered based upon the regional and local interest of viewers. This can accelerate a service provider's ability to evolve and capitalize on new business opportunities.
Motorola expects Terayon to enhance its video infrastructure and seamless mobility core through a series of industry-recognized video processing solutions that enable digital ad insertion, motion and graphical overlays, channel branding and channel line-up solutions as well as cutting-edge ad insertion delivery technologies.
"Operators around the world are looking for a digital video core that will maximize bandwidth and enable the delivery of revenue-generating services," said Dan Moloney, president, Motorola Connected Home Solutions. "The acquisition of Terayon will enhance Motorola's end-to-end portfolio for the delivery of next-generation services such as targeted advertising and program insertion solutions."
Upon completion of the transaction, Terayon will become a wholly-owned subsidiary of Motorola and will be integrated into the Motorola Connected Home Solutions business. Motorola intends to maintain Terayon's operations in Santa Clara, Calif.
The transaction is expected to be neutral to Motorola's earnings per share in the first year following closing, excluding certain non-cash charges relating to amortization associated with acquired intangibles and other one- time accounting and transaction-related costs. The transaction is expected to be completed in the second or third quarter of 2007.
--------
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
Don't forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP
Communications industry. The library offers white papers, case studies and other documents which are free to registered users.
Internet Protocol (IP) | X |
| IP stands for Internet Protocol, a data-networking protocol developed throughout the 1980s. It is the established standard protocol for transmitting and receiving data
in packets over the Internet. I...more |
TMCnet LOGIN
Webinars
