IPTV technology provider, Tut Systems, has signed a definitive merger agreement with Motorola, under which the latter will acquire all the outstanding shares of Tut’s common stock for $1.15 per share in cash. (Note: other recent acquisitions by Motorola in the digital video space include those of set-top box vendor, Kreatel; and of VOD technology providers, Broadbus and Vertasent.) The deal has a total value of $39 million, on a fully diluted basis. Tut–whose offerings include end-to- end digital video encoding, processing and distribution products, which 
support MPEG-2 and MPEG-4 AVC video compression, local ad insertion, forward error correction, and real-time conditioning of video and audio–claims that its products power IPTV deployments for over 160 service providers around the world. Motorola says that the integration of Tut’s solutions with its own digital video delivery products will improve its ability to enable service providers to deploy advanced video services over IP, ATM and RF-based network architectures. It claims to have deployed 2060 digital video networks and over 50 million digital set-top boxes worldwide. "This transaction brings together the telco-aware IPTV processing capabilities of Tut Systems with Motorola’s proven video delivery expertise," Dan Moloney, president of Motorola’s Connected Home Solutions division, said in a prepared statement. "Together, our combined portfolio will provide service providers with next-generation solutions for delivering rich video experiences into the connected home–and out into the world." Added Tut president and CEO, Sal D’Auria: "Motorola’s financial resources and customer relationships will enable us to address larger customer opportunities that were challenging as a smaller company. My team is committed to working closely with Motorola to ensure a rapid and seamless transition."
The merger is expected to close in the first quarter of this year. Once it is complete, Tut Systems will become a wholly owned subsidiary of Motorola, and will be integrated into the latter’s Connected Home Solutions business. However, Motorola says that it will maintain Tut’s operations in Lake Oswego, Oregon; and in San Diego and Pleasanton, California.
Originally Published: January 2, 2006 in [itvt] Issue 7.12 Part 1
Click: http://www.itvt.com to subscribe to our free email newsletter, which contains all the news stories you see on this Web site, and additional breaking news and scoops, in-depth features, interviews, screenshots, videos, and other exclusive content you will not find anywhere else.
[itvt]’s
Early Bird Registration is now open:
http://www.thetvoftomorrowshow.com
March 13-14, 2007
San Francisco, CA
Filed under: Industry
