Wednesday, December 20, 2006

Motorola To Acquire Tut Systems for $39 Million

Motorola agreed to acquire Tut Systems for $1.15 per share in cash, giving the transaction a value of approximately $39 million on a fully-diluted basis.

Tut Systems provides carrier-class end-to-end digital video encoding, processing and distribution products. Their solutions support MPEG-2 and MPEG- 4 AVC video compression, local ad insertion, forward error correction, and real-time conditioning of video and audio. Tut Systems' customer list includes more than 160 service providers worldwide.

Tut Systems' "Astria" content processor (CP)is an IPTV headend solution supporting various access networks, including ADSL, VDSL, fiber to the home (FTTH) and hybrid-fiber coax (HFC), all within a single chassis. Protocol support includes ATM, pure-IP, IP over ATM and native MTS. Astria CPs support physical interface requirements including Gig-E, OC-3, DVB-ASI.

Motorola said it plans to integrate Tut Systems' solutions with its own digital video delivery solutions for supporting advanced video services over IP, ATM, or RF-based network architectures. Motorola currently has deployed 2060 digital video networks and over 50 million digital video set tops worldwide.

Once the deal closes, Tut Systems will become a wholly-owned subsidiary of Motorola and will be integrated into the Motorola Connected Home Solutions business. Motorola intends to maintain Tut Systems' operations in Lake Oswego, Oregon, San Diego California and Pleasanton California.


See also