Motorola Pondering RiverDelta Buy


Motorola Inc. is mulling the acquisition of RiverDelta Networks Inc.
following an off-again, on-again courtship that started to heat up again just
prior to last month's National Show, industry sources said.

A Motorola spokeswoman declined comment. RiverDelta officials were not
immediately available for comment. In previous interviews, RiverDelta confirmed
that it has received acquisition offers from 'very recognizable names' within
the cable industry.

RiverDelta, a start-up based in Tewksbury, Mass., makes advanced
cable-modem-termination systems and routing equipment for the cable industry,
including its flagship chassis, the 'Broadband Services Router-64000,' and a
smaller, pizza-box-sized routing box called the 'BSR-1000.' Both chassis have
been qualified for Data Over Cable Service Interface Specification 1.0.

RiverDelta's equipment would likely be folded into Motorola's Broadband
Communications Sector division, which also makes and markets CMTS products.

Such a marriage would make plenty of business sense for both parties, Kinetic
Strategies Inc. president Michael Harris said. A combination of RiverDelta's
gear and Motorola Broadband's well-connected sales channels could 'give Cisco
[Systems Inc.] a run for their money,' he added.

Additionally, RiverDelta's equipment and Internet-protocol edge-routing
potential could springboard Motorola Broadband into markets outside of cable,
including fixed wireless, he noted.

A Motorola-RiverDelta merger could spark an expected consolidation of the
struggling CMTS sector, which will be hard-pressed to match last year's $638
million in revenues, according to Gartner Inc.'s Dataquest Inc. projections.

Cadant Inc., another fledgling CMTS vendor based in Illinois, has also been
party to acquisition inquiries.

Broadband Access Systems Inc., yet another CMTS start-up, went off the table
Oct. 2, 2000, when it sold out to ADC Telecommunications Inc. At the time, the
stock deal was valued at $2.25 billion, and ADC stock traded at $27.18 per
share. ADC shares closed at $6.07 Tuesday.