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Motorola gains video tech with Tut acquisition

In $39 million deal, Tut Systems' video technology will expand Motorola Connected Home Solutions business.

Candace Lombardi
In a software-driven world, it's easy to forget about the nuts and bolts. Whether it's cars, robots, personal gadgetry or industrial machines, Candace Lombardi examines the moving parts that keep our world rotating. A journalist who divides her time between the United States and the United Kingdom, Lombardi has written about technology for the sites of The New York Times, CNET, USA Today, MSN, ZDNet, Silicon.com, and GameSpot. She is a member of the CNET Blog Network and is not a current employee of CNET.
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Candace Lombardi

Motorola and Tut Systems, a maker of digital video technology, have signed a merger agreement, both companies announced Thursday. As part of the agreement, Motorola will acquire Tut as a wholly owned subsidiary and it will become part of its Motorola Connected Home Solutions business. The terms of the deal include outstanding shares of Tut common stock at $1.15 per share, totaling $39 million.

Tut is known for its video encoding, processing and distribution technology for MPEG-2 and MPEG-4 AVC, including ad insertion, for phone carriers. The deal will augment Motorola's digital video networks by allowing the company to offer advanced video services to providers for IP, ATM and radio frequency-based architectures, according to Motorola.