Motorola acquiring Terayon Communication Systems

World’s second largest mobile phone maker Motorola has confirmed that they are acquiring Terayon Communication Systems.

The deal is worth around $140 million and Motorola aims to boost their video technology through this deal.

Motorola said in a statement that this acquisition would give it technology that lets service providers offer video based on regional and local interest and allows for the insertion of digital advertising and graphical overlays.

The deal with Terayon is expected to be neutral to Motorola’s earnings per share in the first year. Motorola has been struggling in their mobile phone division in the recent months and they now aim to enhance their home video and network technology business.

Some of their other recent acquisitions include Tut Systems and Netopia in addition to Vertasent LLC, Broadbus Technologies and Kreatel.

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