Mobile motto marauder Motorola and the privately-held Modulus Video Inc. have just signed a definitive merger agreement through which Motorola will acquire Modulus. After buying companies like Broadbus, Kreatel, Tut Systems and Netopia, Motorola has turned its head towards Modulus because of their two year collaboration and more significantly because of Modulus' MPEG-4 Advanced Video Coding (AVC) compression systems that have been designed for delivery of high value video content in the IPTV, cable, broadcast and satellite marketplace.

After the announcement, Dan Moloney, President, Home and Networks Mobility business, Motorola stated that - “Motorola is committed to offering an integrated, end-to-end video portfolio designed to meet the current and next-generation requirements of operators,” ... “As consumers demand more high definition video and interactive services, the need for advanced compression technology is increasingly important. As part of its advanced real-time video encoding products, Modulus Video has a powerful architecture and product development framework that is well suited for continued technological advancement.”

After completing the transaction Modulus Video will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Home and Networks Mobility business. The transaction is now subject to customary closing conditions, including regulatory approvals and the approval of Modulus Video stockholders, but, it everything goes well, the deal should be closed either at the end of Q2 or the beginning of Q3 (2007).