Motorola acquires Modulus Video

Motorola and Modulus Video announced May 17 the signing of a definitive merger agreement under which Motorola will acquire Modulus Video. The terms of the transaction were not disclosed.

Modulus Video develops and markets MPEG-4 Advanced Video Coding (AVC) compression systems designed for delivery of high-value video content in the IPTV, cable, broadcast and satellite marketplace. It has partnered with Motorola for more than two years to bring 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.

Upon completion of the transaction, Modulus Video will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Home & Networks Mobility business. Motorola intends to maintain Modulus Video operations in Sunnyvale, CA.

The transaction is expected to be completed in the second or third quarter of 2007.

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