Motorola to acquire video distribution technology company Tut Systems

US based tech giant Motorola has confirmed that they have signed a definitive agreement Thursday to acquire video distribution technology company Tut Systems.

This deal would be conducted in a cash transaction and would cost Motorola around $39 million.

The deal puts the value of Tut at $1.15 a share. This price is a premium of around 18.5% on the company’s share price before this news was revealed in the media.

This acquisition would help Motorola boost their offerings for the telecom customers. Tut Systems specializes in providing services like digital video encoding, processing and distribution products.

This would help Motorola serve their existing customers like AT&T Inc. and Verizon Communications Inc. with more services. They also recently acquired Netopia Inc. for $208 million.

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