The deal was not unexpected because Modulus has been a Motorola partner for over two years. Motorola said the acquisition would complement its recent purchases of Broadbus, Kreatel, Tut Systems, and Netopia to give it technologies to create and deliver an integrated video delivery system for multiple network architectures.
Sunnyvale, California-based Modulus was formed in 2002 and claims to be the only company totally focused on perfecting the MPEG-4 AVC video compression standard. It said its encoders are used in IPTV deployments around the world and are suitable for broadcast, narrowcast and video-on-demand markets.
Modulus will become part of Motorola’s newly formed home and networks mobility business. While the company has been suffering because of the poor performance of its handset business, the rest of the business has been booming on the back of demand for IPTV.
