Motorola has announced that it has entered into a definitive agreement to acquire California-based Synchronous, Inc., a provider of fibre optic transmission systems for video, data and voice transmission.
According to a statement, this acquisition will expand the Motorola Broadband Communications Sector’s infrastructure product suite with best-in-class optical networking capabilities and telecommunications industry solutions to meet the needs of the fast-growing global optical transport market.
The transaction is valued at $260 million, subject to certain adjustments. According to the merger agreement, Motorola will acquire all of Synchronous, Inc.’s capital stock in exchange for shares of Motorola’s common stock at an exchange ratio that will not be fixed until immediately prior to the closing of the acquisition.
The acquisition will provide Motorola Broadband’s Transmission Network Systems (TNS) business with Synchronous’s optical networking technology – including its Dense Wave Division Multiplexing (DWDM) 1550nm transmitter platform and Erbium Doped Fibre Amplifiers (EDFAs) – as well as a staff of over 70 Research & Development, engineering, product-marketing, manufacturing, and technical-sales professionals.
Synchronous will be integrated into Motorola Broadband’s TNS business under the direction of Dan Moloney, senior vice president and general manager of Motorola Broadband’s IP Systems Group.
The merger is subject to various closing conditions, but is expected to close in late 2001 or early 2002.