Motorola Completes Acquisition of Netopia, Inc.
Transaction Expands Motorola's Portfolio of Voice and Data Solutions for the
Telecom Connected Home
SCHAUMBURG, Ill., Feb. 7 /PRNewswire-FirstCall/ -- Motorola, Inc.
(NYSE: MOT) announced that it has completed its acquisition of Netopia, Inc.
(Nasdaq: NTPA). The transaction has a total equity value of approximately
$208 million on a fully-diluted basis.
Netopia is a leader in providing carrier-class broadband customer premise
equipment (CPE), remote management software, and services to telecom operators
worldwide. The company provides a full portfolio of products designed for DSL
networks, including wired and wireless modems, routers, and gateways. The
company's products deliver voice, video, data, and other advanced services to
residential and business customers.
The acquisition enables Motorola to further address the global broadband
DSL opportunity. Netopia's carrier-class portfolio of products and
technologies extends Motorola's current solutions for the emerging IPTV
opportunity. As a combined product portfolio, Motorola will now offer carriers
a full suite of home CPE and remote management software, providing support for
any connected device in the home, including media hubs, voice gateways, and IP
set-tops. This will complement the leading video, voice, and data portfolio
Motorola already provides for HFC and optical network operators worldwide.
As previously announced on November 14, 2006, the two companies signed a
definitive merger agreement under which Motorola has now acquired all of the
outstanding shares of Netopia common stock. The transaction was completed
Tuesday following approval of the merger by Netopia shareholders. With the
completion of the transaction, trading in Netopia common stock was suspended
at the close of business on Tuesday.
About Motorola
Motorola is known around the world for innovation and leadership in
wireless and broadband communications. Inspired by our vision of Seamless
Mobility, the people of Motorola are committed to helping you get and stay
connected simply and seamlessly to the people, information, and entertainment
that you want and need. We do this by designing and delivering "must have"
products, "must do" experiences and powerful networks -- along with a full
complement of support services. A Fortune 100 company with global presence and
impact, Motorola had sales of US $42.9 billion in 2006. For more information
about our company, our people and our innovations, please visit
http://www.Motorola.com .
Forward-Looking Statements
Certain statements contained in this press release, including future
financial and operating results, benefits and synergies of the transaction,
future opportunities for the combined company and products, any other
statements regarding Motorola's or Netopia's future expectations, beliefs,
goals or prospects, the near-term impact of the acquisition on Motorola's
earnings per share, and any statements that are not statements of historical
facts might be considered forward-looking statements. While these forward-
looking statements represent managements' current judgment of future events,
they are subject to risks and uncertainties that could cause actual results to
differ materially from those stated in the forward-looking statements.
Important factors that could cause actual results or events to differ
materially from those indicated by such forward-looking statements, include:
(i) the parties' ability to meet expectations regarding the accounting and
tax treatments of the transaction; (ii) the possibility that the parties may
be unable to achieve expected synergies and operating efficiencies within the
expected time-frames or at all; (iii) Motorola's ability to successfully
integrate Netopia's operations into those of Motorola and the possibility that
such integration may be more difficult, time-consuming or costly than
expected; (iv) revenues following the transaction may be lower than expected;
(v) operating costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with employees,
customers, clients or suppliers) may be greater than expected following the
transaction; (vi) the retention of certain key employees at Netopia; (vii) the
inability to protect either party's intellectual property rights may weaken
its competitive position; (viii) certain software is licensed from third
parties who require, among other things, the payment of royalties, which could
affect the development and enhancement of either party's products; (ix) third
parties may claim that either party's products infringe their intellectual
property rights; and (x) the other factors described in Motorola's Annual
Report on Form 10-K for the year ended December 31, 2005 and its subsequent
reports filed with the SEC, and Netopia's Annual Report on Form 10-K for the
year ended September 30, 2005 and its subsequent reports filed with the SEC.
Motorola and Netopia assume no obligation to update or revise any forward-
looking statement in this press release, and such forward-looking statements
speak only as of the date hereof.
MOTOROLA and the Stylized M Logo are registered in the US Patent &
Trademark Office. All other product or service names are the property of
their respective owners.
