Motorola to buy Winphoria Networks
The wireless equipment maker expects the acquisition of the switching technology provider to help bolster its portfolio of product offerings.
The move comes as a number of equipment makers, including Motorola, are looking for ways to enhance their line of products as carriers migrate to next-generation cell phone networks.
Winphoria's soft switches, which cost less than traditional circuit switches, can support second-generation and third-generation networks simultaneously and consume less space because they require less power to operate.
Winphoria "benefits for our carrier customers and prospects by helping them reduce operating costs and by offering them a software-driven switch that can be easily upgraded and enhanced at a lower cost," said Christopher Galvin, Motorola's chief executive officer.
Once the deal closes, Winphoria will become part of Motorola's Global Telecom Solutions business unit. The all-cash transaction is anticipated to close in the second quarter. Financial terms were not disclosed.
The deal builds on an earlier agreement the two companies struck last August, under which Motorola created its own branded Motorola soft switch. The switches are in networks in North America and Asia. Motorola plans a limited commercial introduction of them in June.