Motorola completes acquisition of Terayon for video, seamless mobility

Motorola, Inc. announced that it has completed its acquisition of all of the outstanding shares of Terayon Communication Systems, Inc.’s common stock for $1.80 per share in cash.  The transaction has a total equity value of $140 mln on a fully-diluted basis.

The acquisition of Terayon and its software-driven application solutions enhances Motorola’s video infrastructure and seamless mobility core by providing Motorola with industry-recognized video processing solutions that enable digital ad insertion, motion and graphical overlays, channel branding and channel line-up solutions as well as cutting-edge ad insertion delivery technologies.

These solutions will enable Motorola’s customers to optimize bandwidth and deliver content based upon the regional and local interest of viewers, accelerating the service provider’s ability to evolve and capitalize on new business opportunities.

The two companies previously announced the signing of a definitive merger agreement on April 23. The transaction was approved by the stockholders of Terayon on June 28. With the completion of the transaction, quotation of Terayon common stock on the Pink Sheets will cease. Terayon now becomes a wholly-owned subsidiary of Motorola and is being integrated into the Motorola Home & Network Mobility business, while will maintaining operations in Santa Clara, CA.