Motorola to acquire Netopia for $208 million

Motorola plans to acquire Netopia, the maker of DSL (Digital Subscriber Line) user equipment, for $208 million, the companies announced on Tuesday.

Netopia makes wired and wireless modems, routers and gateways that deliver voice, video and data to residential and business customers.

With Netopia's products, Motorola plans to offer a full suite of connected home products, including media hubs, voice gateways and IP (Internet Protocol) set tops. The acquisition will also help Motorola pursue IPTV opportunities.

Netopia also makes device management software enabling the centralized management of IP gateways, modems and VOIP (voice over IP) equipment.

Netopia will become a subsidiary within Motorola and will be part of Motorola's Connected Home Solutions business.

Motorola currently offers a range of products from the division, including cordless phones, VOIP gateways, cable modems, cable set-top boxes, high-definition set-top boxes and digital video recorders.

Netopia's Emeryville, California, headquarters will become the new headquarters of Motorola's voice and data customer premise equipment business.

Motorola has made two other acquisitions this year for its Connected Home Solutions group, including Broadbus Technologies, a developer of television on demand technologies. Motorola also acquired Vertasent, a developer of software that optimizes the delivery of content on demand and IPTV.

The Netopia acquisition is expected to close in early 2007.