Motorola acquires Tut Systems

Filed in archive IPTV on December 27, 2006

Motorola's got its credit card out and it is not afraid to use it!

Back in January, Motorola bought Kreatel Communications, an IP set-top box and middleware vendor. Last month Motorola bought Netopia, a maker of DSL equipment. Now Motorola acquired Tut Systems in a deal worth $39 million.

Tut, founded in 1989, is in the IPTV market, and it now counts more than 160 IPTV-service providers worldwide as customers. Tut's encoding equipment supports MPEG-2 and MPEG- 4 AVC video compression, as well as other features such as ad insertion and conditioning of video and audio.

Motorola's offer for Tut of $1.15 per share is almost a 20% premium. The companies expect the acquisition to close in the first quarter of 2007. Motorola will maintain Tut's operations in Lake Oswego, oregon; and San Diego and Pleasanton, California.