Motorola Completes Acquisition of Tut Systems, Inc.
31 March 2007 - 2:44AM
PR Newswire (US)
SCHAUMBURG, Ill., March 30 /PRNewswire-FirstCall/ -- Motorola, Inc.
(NYSE:MOT) announced that it has completed its acquisition of Tut
Systems, Inc. (NASDAQ:TUTS). The transaction has a total equity
value of approximately $39 million on a fully diluted basis. Tut
Systems delivers industry-leading content processing and
distribution products for deploying next-generation video and
Internet Protocol (IP) services over broadband networks. More than
160 service providers including telecommunications carriers, cable
operators, entertainment companies and government agencies
worldwide use Tut Systems products. The integration of Tut Systems'
solutions with Motorola's industry-leading digital video delivery
solutions will expand Motorola's ability to help service providers
deploy advanced video services over IP, ATM, or RF-based network
architectures. Motorola currently has deployed 2,060 digital video
networks and more than 50 million digital video set tops worldwide.
As previously announced on December 21, 2006, the two companies
signed a definitive merger agreement under which Motorola has now
acquired all of the outstanding shares of Tut Systems common stock.
The transaction was approved by the stockholders of Tut Systems on
March 6, 2007 and was completed today. With the completion of the
transaction, trading in Tut Systems common stock will be suspended
at the close of business today. About Tut Systems, Inc. Tut
Systems, Inc. delivers advanced content processing and distribution
products as well as comprehensive system integration services for
deploying next-generation data and video services over broadband
networks. Service providers, content providers and government
agencies worldwide use Tut Systems solutions to deliver
broadcast-quality video over broadband networks. Tut Systems is
headquartered in Lake Oswego, OR. For more information, visit
http://www.tutsys.com/ or call (971) 217-0400. About Motorola
Motorola is known around the world for innovation and leadership in
wireless and broadband communications. Inspired by our vision of
Seamless Mobility, the people of Motorola are committed to helping
you get and stay connected simply and seamlessly to the people,
information, and entertainment that you want and need. We do this
by designing and delivering "must have" products, "must do"
experiences and powerful networks -- along with a full complement
of support services. A Fortune 100 company with global presence and
impact, Motorola had sales of US $42.9 billion in 2006. For more
information about our company, our people and our innovations,
please visit http://www.motorola.com/. Forward-Looking Statements
Certain statements contained in this press release, including
future financial and operating results, benefits and synergies of
the transaction, future opportunities for the combined company and
products, any other statements regarding Motorola's or Tut Systems'
future expectations, beliefs, goals or prospects, the near-term
impact of the transaction on Motorola's earnings per share, and any
statements that are not statements of historical facts might be
considered forward-looking statements. While these forward- looking
statements represent managements' current judgment of future
events, they are subject to risks and uncertainties that could
cause actual results to differ materially from those stated in the
forward-looking statements. Important factors that could cause
actual results or events to differ materially from those indicated
by such forward-looking statements, include: (i) the parties'
ability to meet expectations regarding the accounting and tax
treatments of the transaction; (ii) the possibility that the
parties may be unable to achieve expected synergies and operating
efficiencies within the expected time-frames or at all; (iii)
Motorola's ability to successfully integrate Tut Systems'
operations and technology into those of Motorola and the
possibility that such integration may be more difficult,
time-consuming or costly than expected; (iv) revenues following the
transaction may be lower than expected; (v) operating costs,
customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers, clients or suppliers) may be greater than
expected following the transaction; (vi) the retention of certain
key employees at Tut Systems; and (vii) the other factors described
in Motorola's Annual Report on Form 10-K for the year ended
December 31, 2005 and its subsequent reports filed with the SEC,
and Tut Systems' Annual Report on Form 10-K for the year ended
December 31, 2005 and its subsequent reports filed with the SEC.
Motorola and Tut Systems assume no obligation to update or revise
any forward- looking statement in this press release, and such
forward-looking statements speak only as of the date hereof.
MOTOROLA and the Stylized M Logo are registered in the US Patent
and Trademark Office. All other product or service names are the
property of their respective owners.
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http://photoarchive.ap.org/ DATASOURCE: Motorola, Inc. CONTACT:
Kalia Farrell, Motorola, Inc., +1-215-323-1059, or ; or Craig
Bender, Tut Systems, Inc., +1-925-201-4511, or Web site:
http://www.motorola.com/ http://www.tutsys.com/
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