Motorola to buy Terayon Communication for $140mn

04/24/07 - newratings.com

NEW YORK, April 24 (newratings.com) – Mobile phone giant Motorola Inc (MOT) Monday announced that it is buying Terayon Communication Systems Inc, a digital video processing and networking software maker, for $140 million.

Santa Clara, California-based Terayon makes products that help in the transition from analog to digital video. The acquisition will provide Motorola with digital processing solutions for its video infrastructure. The acquired company will operate as a wholly-owned subsidiary of Motorola and will be integrated into the US company’s Connected Home Solutions business. The deal, subject to regulatory and shareholder approvals, is expected to be completed by the end of the second or the third quarter. The $1.80 per share cash deal is expected to be neutral to Motorola’s earnings per share in the first year.