Motorola beefs up video services with new acquisition

Motorola will buy Terayon Communication Systems for about $140 million in a bid to boost its video technology, Reuters report said.

The Reuters report said the deal, the latest in a spate of Motorola acquisitions, would give it technology that lets service providers offer video based on regional and local interest and allows for the insertion of digital advertising and graphical overlays.

Motorola would pay about $1.80 per share in cash for each share of Terayon in a deal that is expected to be neutral to Motorola's earnings per share in the first year, excluding acquisition-related charges, the Reuters report further said.

The report said Motorola, which is struggling with weakness in its cell phone unit, has been beefing up its home video and network technology business in the last year as phone carriers have been launching Internet-based video services.

It acquired digital video technology developer Tut Systems in March, and bought networking firm Netopia in February, the report added.

The company's biggest recent deal was its $3.9 billion purchase of rugged handset maker Symbol Technologies in January.

It also bought wireless email company Good Technology for an undisclosed sum in the first quarter this year, the report further said.