Motorola this week spent $140 million acquiring Terayon, the supplier of real-time digital video networking applications to Pay TV operators.
Tareyon is best known for its CherryPicker systems which are bandwidth rate shaping system and multiplexers and recently it has branched out to localized digital ad insertion systems over IP networks and addressable advertising systems.
Dan Moloney, President of Motorola Connected Home Solutions said, ‘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.’
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 intends to maintain Terayon’s operations in Santa Clara, California.
The transaction is expected to be neutral to Motorola’s earnings per share in the first year, excluding certain non-cash charges and is subject to customary closing conditions, including regulatory approvals and the approval of Terayon’s stockholders, and is expected to be completed in the second or third quarter of 2007.