Not too much has been heard of Echelon Corp’s Local Operating Network since the Palo Alto company announced its development of the low-cost standard node processor and LonWorks software for tying controllers and devices to be controlled together some 15 months ago. But Motorola Inc is impressed enough with the concept and technology that it has agreed to invest $20m more in the company, buying $7.5m in preferred stock up front and agreeing and buy an additional $12.5m within 12 months. These transactions will take its stake to about 19% and it has agreed not to go beyond 20%. Motorola fabricates and sells the Echelon-designed Neuron Chip, which contains the full communications protocol and control functions. Motorola also distributes the LonBuilder 2 Developer’s Workbench under a separate pact.
