Motorola Inc. announced plans Monday to acquire networking specialist RiverDelta Networks Inc., hoping to build out Motorola's arsenal of broadband infrastructure products for bandwidth-hungry applications such as streaming video.
The stock-for-stock deal, valued by the companies at US$300 million [m], would send RiverDelta Networks' CMTS (cable modem termination system) technology and more than 200 staff to Motorola. RiverDelta Networks' assets would become part of Motorola's Broadband Communications Sector group once all closing conditions are met, the companies said in a statement. Motorola expects the deal to close in the third or fourth quarter, a Motorola spokeswoman said.
The acquired technology would beef up parts of Motorola's existing IP (Internet Protocol) infrastructure portfolio and boost its efforts to improve technologies in the areas of IP (Internet protocol) data-over-cable (DOCSIS), voice over IP and IP streaming video.
Tewksbury, Massachusetts-based RiverDelta Networks makes routers and other networking products that help automate the flow of IP-based data, distinguishing between differing types of content and routing the information based on the data type.