In its quest to offer end-to-end IP infrastructure solutions, Motorola Inc. (www.motorola.com) announced yesterday that it will acquire RiverDelta Networks Inc. (www.riverdelta.com), a Tewksbury, Mass.-based provider of carrier-class broadband routing, switching, cable modem termination system (CMTS) and service management solutions, in a deal valued at $300 million.
Motorola will acquire all of RiverDelta’s capital stock in exchange for shares of Motorola common stock. The final exchange ration will not be determined until just before the closing of the acquisition, and will be based on the average trading price of Motorola’s common stock at that time.
With the acquisition, Motorola will get RiverDelta’s carrier-class routing platform, integrated, high-density CMTS and more than 200 R&D, engineering, product marketing, manufacturing and technical sales employees. With the acquired technology, Motorola hopes to reinforce its position in the CMTS headend space, and support its growth initiatives concerning IP data-over-cable, VoIP and IP streaming video.
"This acquisition makes sense for both companies, because it strengthens our ability to meet the needs of broadband network operators who are migrating to high-availability DOCSIS 1.1 networks to deploy complex broadband services like tiered data-over-cable, VoIP services, and IP streaming video," Dan Moloney, senior vice president and general manager of Motorola Broadband's IP Systems Group, said in a statement. "By combining RiverDelta Networks' best-in-class integrated routing technology with Motorola's established CMTS business and broadband network operator sales and support channel, we will now be even more strongly poised to deliver the reliable, efficient, and cost-effective network solution that operators require."
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