Motorola to Acquire Modulus Video
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Press release date: May 17, 2007
SCHAUMBURG, Ill. and SUNNYVALE, Calif., May 17: Motorola, Inc. (NYSE:MOT) and Modulus Video, Inc., a privately-held company, announced the signing of a definitive merger agreement, under which Motorola will acquire Modulus Video. The terms of the transaction were not disclosed.
Modulus Video is a leader and innovator in MPEG-4 Advanced Video Coding (AVC) compression systems designed for delivery of high value video content in the IPTV, cable, broadcast and satellite marketplace. Modulus Video has partnered with Motorola for over two years bringing high-quality 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.
"Motorola is committed to offering an integrated, end-to-end video portfolio designed to meet the current and next-generation requirements of operators," said Dan Moloney, President, Home and Networks Mobility business, Motorola, Inc. "As consumers demand more high definition video and interactive services, the need for advanced compression technology is increasingly important. As part of its advanced real-time video encoding products, Modulus Video has a powerful architecture and product development framework that is well suited for continued technological advancement."
"Through this acquisition, Modulus Video will become part of a world-class organization in a highly strategic market segment. Our team will benefit from Motorola's rich heritage and leadership of video delivery expertise," said Bob Wilson, Chairman and CEO of Modulus Video. "Modulus Video will bring to Motorola a software-centric platform that ensures flexibility, reduced cost and fast development time."
Upon completion of the transaction, Modulus Video will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Home and Networks Mobility business. Motorola intends to maintain Modulus Video operations in Sunnyvale, California.
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Modulus Video stockholders, and is expected to be completed in the second or third quarter of 2007.
About Modulus Video
Since its founding in 2002, Modulus Video has been the only company to focus 100 percent of its efforts on perfecting the use of the MPEG-4 AVC video compression standard. As a result, Modulus Video's powerful MPEG-4 AVC encoders are now a critical component behind today's most compelling IPTV deployments around the world, providing the most efficient use of available bandwidth and delivering outstanding standard definition and high definition television services over new and existing broadband infrastructure. Its products meet the needs of the broadcast, narrowcast and video-on-demand markets. For more information, please visit http://www.modulusvideo.com/.
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/.
Source: Motorola, Inc.
CONTACT: Paul Alfieri Motorola, Inc., +1-215-323-1804, Paul.Alfieri@motorola.com; Evan Sirof Modulus Video, +1-845-255-1909, email@example.com Web site: http://www.motorola.com/ http://www.modulusvideo.com/