Motorola to acquire AVC compression specialist Modulus Video

Motorola has signed a definitive merger agreement to acquire the assets of Modulus Video, a provider of MPEG-4 Advanced Video Coding (AVC) compression systems. Financial details were not disclosed, but the deal is expected to be completed in the second or third quarter of this year.

Since 2002, Modulus Video has designed real-time video encoding systems for the bandwidth-efficient delivery of high value video content for the IPTV, cable, broadcast and satellite industry. Modulus Video has partnered with Motorola for more than two years to bring high-quality encoding solutions to 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. Modulus Video provides Motorola with a software-centric platform that ensures flexibility, reduced cost and fast development time.

Dan Moloney, president of the Connected Home Solutions business for Motorola, said that as consumers demand more HD video and interactive services, the need for advanced compression technology has become increasingly important. Modulus Video has a powerful architecture and product development framework that is well suited for continued technological advancement.

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 will maintain Modulus Video’s operations in Sunnyvale, CA.

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