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.
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