Motorola has announced that it has entered into a definitive agreement to acquire RiverDelta Networks, Inc., a provider of carrier-class broadband routing, switching, cable modem termination system (CMTS), and service management solutions.
The transaction is valued at $300 million, subject to certain adjustments. According to the merger agreement, which is subject to various closing conditions, Motorola will acquire all of RiverDelta Networks’ capital stock in exchange for shares of Motorola’s common stock.
The final exchange ratio will not be fixed until immediately prior to the closing and will be based on the average trading price of Motorola’s common stock at that time.
The acquisition will, according to Motorola, provide Motorola Broadband with RiverDelta Networks’ carrier-class routing platform, integrated, high-density CMTS, and staff of over 200 R&D, engineering, product-marketing, manufacturing, and technical-sales professionals.
This acquisition will also enable Motorola to offer a comprehensive solution for metropolitan and regional network applications and to deploy the integrated broadband-routing platform in environments using other wired and wireless access media.
Upon completion of the acquisition, Motorola will be able to offer the industry’s broadest CMTS product family to date, with products ranging from the high-density solutions that combine high-availability, integrated routing, and per-flow Quality of Service (QoS) for operators.