In its second acquisition announcement this week, Motorola Inc. today said plans to acquire wireless infrastructure company Winphoria Networks Inc.
Motorola plans to integrate the core infrastructure provider of next generation packet based mobile switching centers for wireless networks into its Global Telecom Solutions Sector (GTSS) business unit. The all-cash deal is expected to close in the second quarter. The value of the agreement was not disclosed.
The acquisition will provide Motorola with additional capability to deliver on its strategy to provide complete networks to support operators' 2.5 generation (2.5G) - 3rd Generation (3G) systems worldwide.
"In acquiring Winphoria, we will augment our strategic position by adding an innovative core telecom switching capability to our portfolio and by providing a competitive media gateway solution. These translate into direct benefits for our carrier customers and prospects by helping them reduce operating costs, and by offering them a software-driven switch that can be easily upgraded and enhanced at lower cost," said Christopher B. Galvin, chairman and CEO for Motorola.
Adding the soft-switch will address a long-standing need in Motorola's network infrastructure solution. It will add core functionality in a way that complements Motorola's existing outsourced circuit-switching portfolio. Customers will still be able to make the choice to purchase traditional circuit switches based on its existing switch supplier relationships, however the addition of softswitch technology will enable GTSS to provide less expensive, yet more versatile, switching solutions to operators as they migrate to technologies that will support integrated voice, data and video applications.
According to Motorola, softswitches require less room, less power to operate, and can be deployed much more quickly than traditional legacy circuit switches. In addition, softswitch architectures allow rapid feature development and high core networking flexibility.
Also this week, Motorola announced that it has successfully completed its cash tender offer of $1.18 per share for all outstanding shares of common stock of telco TV vendor Next Level Communications and its intention to acquire the remaining ownership of Next Level through a short-form merger.
