Motorola Inc. and Modulus Video Inc. announced the signing of a definitive merger agreement, under which Motorola will acquire Modulus Video. The terms of the transaction were not disclosed.
Modulus Video is a leader and innovator in MPEG-4 Advanced Video Coding (AVC) compression systems designed for delivery of high value video content in the IPTV, cable, broadcast and satellite marketplace. Modulus Video has partnered with Motorola for over two years bringing high-quality encoding solutions to key customers around the world.
This acquisition will complement Motorola's recent acquisitions of Broadbus, Kreatel, Tut Systems and Netopia in the creation and delivery of an integrated, end-to-end video delivery system for multiple network architectures.
"Motorola is committed to offering an integrated, end-to-end video portfolio designed to meet the current and next-generation requirements of operators," said Dan Moloney, President, Home and Networks Mobility business, Motorola, Inc. "As consumers demand more high definition video and interactive services, the need for advanced compression technology is increasingly important. As part of its advanced real-time video encoding products, Modulus Video has a powerful architecture and product development framework that is well suited for continued technological advancement."
"Through this acquisition, Modulus Video will become part of a world-class organization in a highly strategic market segment. Our team will benefit from Motorola's rich heritage and leadership of video delivery expertise," said Bob Wilson, Chairman and CEO, Modulus Video. "Modulus Video will bring to Motorola a software-centric platform that ensures flexibility, reduced cost and fast development time."
Upon completion of the transaction, Modulus Video will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Home and Networks Mobility business. Motorola intends to maintain Modulus Video operations in Sunnyvale, California.
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Modulus Video stockholders, and is expected to be completed in the second or third quarter of 2007.
Modulus VideoMotorola
