Modulus specialises in MPEG-4 Advanced Video Coding compression systems for the delivery of video content across IPTV, cable, broadcast and satellite.
Modulus has been supplying Motorola with encoding technology for over two years.
"Motorola is committed to offering an integrated, end-to-end video portfolio designed to meet the current and next-generation requirements of operators," said Dan Moloney, president of the Home and Networks Mobility business at Motorola.
Bob Wilson, chairman and chief executive of Modulus Video, added: "Modulus will bring to Motorola a software-centric platform that ensures flexibility, reduced cost and fast development time."
Modulus Video will become a wholly owned subsidiary of Motorola on completion of the transaction, and will be integrated into the Motorola Home and Networks Mobility business.
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Modulus Video stockholders, and is expected to be completed in the second or third quarter of 2007.
Purchasing Modulus is the latest in a spree of video acquisitions by Motorola. The firm has recently snapped up Broadbus, Kreatel, Tut Systems and Netopia.
Resetting the telemetry circuits and associated boards brought the instrument back to operations mode
Fortnite news and updates: Flaw in Fortnite authentication could have helped attackers steal player login credentials
Attackers could have used Fortnite security flaw to buy in-game currency on players' stored credit cards
New photos show cotton seeds sprouting in sealed container - with other plants expected to sprout within days
Sudden increases in availability of sniper rifles on Vikendi