By Lisa Kerner
Charlotte, N.C., April 23 - Motorola, Inc. entered a definitive merger agreement to acquire Terayon Communication Systems, Inc. for $1.80 per share in cash in a transaction valued at about $140 million.
The agreement includes a termination fee of $5.25 million.
Once the transaction is completed in the second or third quarter of 2007, Terayon will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Connected Home Solutions business.
"Operators around the world are looking for a digital video core that will maximize bandwidth and enable the delivery of revenue-generating services," Motorola Connected Home Solutions president Dan Moloney said in a company news release.
"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."
Terayon is a Santa Clara, Calif., provider of real-time digital video networking applications to cable, satellite and telecommunication service providers.
Motorola is a wireless and broadband communications company based in Schaumburg, Ill.
| Acquirer: | Motorola, Inc.
|
| Target: | Terayon Communication Systems, Inc.
|
| Transaction total: | $140 million
|
| Price per share: | $1.80
|
| Announcement date: | April 23
|
| Termination fee: | $5.25 million
|
| Expected closing: | Second or third quarter of 2007
|
| Stock price for target: | Pink Sheets: TERN; $1.68 on April 20
|
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