Motorola to acquire Terayon Communication Systems

Motorola, Inc. and Terayon Communication Systems, Inc. announced that the two companies have signed a definitive merger agreement, under which Motorola will acquire all of the outstanding shares of Terayon’s common stock for $1.80 per share in cash. The transaction will have a total equity value of $140 mln on a fully-diluted basis.

Terayon is dedicated to creating video processing solutions that optimize bandwidth and enable content to be delivered based upon the regional and local interest of viewers. This can accelerate a service provider’s ability to evolve and capitalize on new business opportunities.

The integration of Terayon and its software-driven application solutions will enhance 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.

“Operators around the world are looking for a digital video core that will maximize bandwidth and enable the delivery of revenue-generating services,” said Dan Moloney, President, Motorola Connected Home Solutions. “The acquisition of Terayon will enhance Motorola’s end-to-end portfolio for the delivery of next-generation services such as targeted advertising and program insertion solutions.”

“Through this proposed merger with Motorola, Terayon will be able to expand its reach and integrate our technology into a diverse set of video platforms,” said Jerry Chase, CEO, Terayon Communication Systems. “Our customers can expect to experience the benefits of a more fully integrated video platform from an acknowledged industry leader.”

Upon completion of the transaction, Terayon will become a wholly-owned subsidiary of Motorola and will be integrated into the Motorola Connected Home Solutions business. Motorola intends to maintain Terayon’s operations in Santa Clara, CA.