Motorola to Buy Terayon for $140M
biz.yahoo.com
Monday April 23, 8:36 am ET
Motorola Agrees to Buy Video Processor Terayon for $140 Million in Cash
SCHAUMBURG, Ill. (AP) -- Motorola Inc., the second-largest maker of cellphone handsets, said Monday it agreed to buy Terayon Communication Systems Inc. for $140 million in cash, expanding the company's ability to offer advanced video on its handsets.
Motorola valued the deal at $1.80 per share, representing a 2 percent discount to Terayon's $1.84 closing price Friday on the pink sheets.
Terayon makes chips that process video. Motorola said the chips will allow the company to offer digital ads and graphical overlays, enabling cellphone providers to sell more advertising space on their networks.
Motorola, which plans to maintain Terayon's operations in Santa Clara, Calif., said the deal will be neutral to earnings in the first year after closing, excluding one-time costs. |
