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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.

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.