Acquisition will help Motorola deliver video technology for IP and ATM Motorola will expand its video delivery lineup by buying Tut Systems for $39 million, the companies announced Thursday.Tut, of Lake Oswego, Oregon, sells systems to service providers for encoding, processing and distributing digital video. Motorola already deploys digital video networks and is a major supplier of TV set-top boxes. But the video services market is rapidly growing and changing, with telecommunications carriers going up against cable companies and IPTV (Internet Protocol television) starting to emerge. Vendors, including networking giant Cisco Systems, are working to put together complete systems for supporting video services.The acquisition will help Motorola deliver video technology for IP and ATM (Asynchronous Transfer Mode) networks as well as the RF (radio frequency) technology most cable operators use, the companies said. Tut’s systems handle video compression, forward error correction, ad insertion and real-time conditioning of audio and video. Tut has deployed video systems for more than 160 service providers worldwide, but the acquisition will help the company go after bigger customers, the companies said. Tut will become a wholly owned Motorola subsidiary and part of the Motorola Connected Home Solutions business. The company will maintain Tut’s operations in Lake Oswego, San Diego and Pleasanton, California.Motorola will pay $1.15 cash for each of Tut’s outstanding common shares. The deal is expected to close in the first quarter of 2007. Technology Industry