Motorola Buys Advanced Compression Firm

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Continuing its consolidation of the cable technology landscape, Motorola announced that it will acquire Modulus Video, a Sunnyvale, Calif.-based firm that has focused on MPEG-4 advanced compression technology.

Terms of the definitive merger agreement for privately-held Modulus were not disclosed. Upon completion of the transaction, which is expected by the third quarter, Modulus will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Home and Networks Mobility business. It will maintain its current operations in California.

The Modulus deal is the latest in a series of strategic acquisitions for Motorola. Last month, the cable equipment giant announced that it was acquiring video networking firm Terayon, which makes video grooming and targeted advertising technology, for $140 million. Last year, Motorola bought Broadbus, a video-demand supplier specializing in dynamic random-access-memory (DRAM) storage, and it has also acquired Kreatel, Tut Systems and Netopia to help create what it calls "an integrated, end-to-end video delivery system for multiple network architectures."

Motorola had previously partnered with Modulus in selling its MPEG-4 encoding tools to Motorola customers.

"As consumers demand more high definition video and interactive services, the need for advanced compression technology is increasingly important," said Dan Moloney, President, Home and Networks Mobility business, Motorola, Inc., in a statement. "As part of its advanced real-time video encoding products, Modulus Video has a powerful architecture and product development framework that is well suited for continued technological advancement

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