Motorola Inc. has signed an agreement to acquire all outstanding shares of Tut Systems for $1.15 per share in cash. The transaction has a value of approximately $39 million on a fully diluted basis, says Motorola.
The integration of Tut Systems' solutions with the digital video delivery solutions of Motorola will expand the later's ability to help service providers deploy advanced video services over IP, ATM, or RF-based network architectures. Motorola has currently deployed 2060 digital video networks and over 50 million digital video set tops worldwide.
"The transaction brings together the telco-aware IPTV processing capabilities of Tut Systems with Motorola's proven video delivery expertise," said Dan Moloney, president, Motorola connected home solutions.
"Our stockholders will be able to receive value for their investment, while our employees, customers and strategic partners will benefit as we join together with Motorola, an established, global leader in architecting and deploying digital and IP video networks," said Sal D'Auria, president & CEO, Tut Systems.
Also, upon completion of the transaction, Tut Systems will become a subsidiary of Motorola and will be integrated into the its connected home solutions business.
