Motorola lands RiverDelta, strikes OpenTV deal
Motorola completed its roughly $300 million stock acquisition of RiverDelta Networks that it announced in July. The company also will partner with OpenTV on Multimedia Home Platform products in the European market.
The merger could result in job cuts. "We are evaluating possible redundancies between the two organizations," says Motorola spokeswoman Jeanne Russo. The company plans to retain operations in RiverDelta's Mansfield and Tewksbury, Mass., facilities, she says.
Under the acquisition deal, RiverDelta's products and businesses will be integrated into Motorola's Network Infrastructure Solutions business, part of its Broadband Communications Sector. The combined NIS business will be headed by VP and GM Peter Sherlock.
Former RiverDelta President and CEO David Callan will act as a strategic advisor for the IP Systems Group, comprised of NIS and the company's modem, telephony and transmission units. Former RiverDelta VP of business development and COO Michael Brown will be Motorola's VP of business development.
In a filing Sept. 10, Motorola outlined the merger process. At that time, it said RiverDelta stockholders would receive $300 million, subject to such adjustments as a deduction for RiverDelta's present $27 million debt. The company warned that could run as high as $45 million, plus interest.
Motorola also said holders of Series B preferred stock would receive the first $62.7 million, with the rest paid to holders of RiverDelta Series A preferred stock and common stock. Holders of Series A preferred stock were to receive the same amount they would if they'd converted to common stock.
Also under the deal, 10 percent of Motorola's common stock was to go into an escrow account to compensate Motorola for purchase price reductions or other issues.
RiverDelta's products include the BSR 64000 broadband services router for large-scale deployment of DOCSIS 1.1. The acquisition will let Motorola offer high-density solutions combining high-availability, integrated routing and per-flow QoS, as well as modular configurations for small/distributed networks, it said in the announcement.
Russo could not say what would occur with RiverDelta's products. "We will be issuing a more detailed product integration strategy … announcement at a later date," likely this quarter, she says.
Separately, Motorola will integrate MHP-compliant middleware from OpenTV into the DVi4000 advanced interactive set-top terminal.
MHP lets digital content providers address all types of terminals, from low-end to high-end set-tops, integrated digital TV sets and multimedia PCs, Motorola says.
The DVi4000 comes with a 300+ MIPS processor, 16-bit 2D graphics, an integrated Euro-DOCSIS cable modem, operator-configurable expandable memory, and an optional hard drive.