Inc, the second-largest maker of cell phone handsets,
yesterday announced its acquisition of Terayon Communication
Systems Inc in an all cash deal for $1.80 per share, a
2 per cent discount to Terayon''s $1.84 closing price Friday.
deal values Terayon for $140 million in cash. Motorola
says the deal will be neutral to earnings in the first
year after closing, excluding one-time costs.
acquisition will enable Motorola to offer advanced video
on its handsets.
makes chips that process video. The chips will allow Motorola
to offer digital ads and graphical overlays, enabling
cell phone providers to offer more advertising space on
plans to maintain Terayon''s operations in Santa Clara,
expects to close the deal in the second or third quarter
of 2007. Terayon posted a loss of $3.8 million in 2006,
on sales of $76.4 million.