Motorola Inc. has agreed to buy Terayon Communication Systems Inc. for $140 million. Under the terms of the agreement, Motorola will acquire all of the outstanding shares of Terayon's common stock for $1.80 per share in cash.
The deal with Terayon, which provides real-time digital video networking applications to cable, satellite and telecommunication service providers, gives Motorola technology that lets service providers offer video based on regional and local interest and allows for digital ad insertion, motion and graphical overlays.
"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," said Dan Moloney, president of Motorola Connected Home 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, of Schaumburg, Ill., intends to maintain Terayon's operations in Santa Clara, Calif.
The deal is expected to close in the second or third quarter of 2007.
