Motorola Buys Tut Systems for $39 Million

Motorola takes another step into the IPTV market by acquiring Tut Systems for $39 million.

Technology giant Motorola is carving out more turf for itself in the nascent IPTV market by acquiring Tut Systems for some $39 million.

Tut currently develops encoding, processing, and distribution products aimed at the digital video marketplace (although they originally won a place in this writer’s heart with long-run Ethernet products back at the dawn of the 21st century). Tut’s technology supports MPEG-2 and MPEG-4 video, and increases the appeal of Motorola gear to (newly-deregulated!) telephone companies looking to enhance their service bundles with the addition of IP-based television and video offerings.

Motorola plans to roll Tut into its Connected Hoe unit, which also saw the additions of Netopia and Good Technology in the last month. Combined the new technology acquisitions will likely not only enhance Motorola’s IPTV technology portfolio, but also have benefits for the company’s mobile video technologies, as implemented in devices like the Motorola Q.

“This transaction brings together the telco-aware IPTV processing capabilities of Tut Systems with Motorola’s proven video delivery expertise,” said Dan Moloney, President, Motorola Connected Home Solutions, in a statement. “Together, our combined portfolio will provide service providers with next-generation solutions for delivering rich video experiences into the connected home— and out into the world.”

Tut will become a wholly-owned Motorola subsidiary; the transaction is expected to be completed during the first quarter of 2007.