Motorola announced Friday that it completed its acquisition of Tut Systems, a vendor of equipment for Internet-protocol-video encoding and processing, in a deal worth about $39 million on a fully diluted basis.
Under the terms of the deal, announced in December, Tut will become a wholly owned subsidiary of Motorola and be integrated into its Connected Home Solutions group. Motorola will maintain Tut’s operations in Lake Oswego, Ore., and San Diego and Pleasanton, Calif.
Tut, founded in 1989, has in recent years focused its business on the IPTV market, and it now counts more than 160 IPTV-service providers worldwide as customers.
Last year Motorola’s Connected Home Solutions group made two other IPTV-related acquisitions: Netopia, a maker of digital-subscriber-line equipment, and Kreatel Communications, an IP set-top-box and middleware vendor.
