Motorola Inc. has taken another step to shore up its Internet-protocol-TV portfolio, announcing that it has entered an agreement to acquire Swedish digital-set-top-box provider Kreatel Communications AB.
Terms of the deal were not disclosed.
Based in Linköping, Sweden, Kreatel offers a set-top box based on a Linux operating system, as well as associated application and middleware systems for use in digital-subscriber-line or fiber-based video-delivery networks.
The vendor has set-top deals with several European telco providers, including Spain’s Telefónica S.A. and Dutch telco outlet Royal KPN N.V.
Kreatel’s set-top platform is a good fit for Motorola’s digital-video-delivery products, and it fills a need for IPTV-based digital set-tops, according to Dan Moloney, president of Motorola’s connected-home-solutions unit.
“Combining Motorola’s and Kreatel’s strengths is immensely attractive to green-field video networks around the world and provides a critical solution as service providers evolve their video networks in the future,” he added. “Motorola will have a flexible IPTV portfolio that addresses the real challenges faced by service providers worldwide as they build and evolve their networks.”
The deal is expected to close later in the first quarter. After that, Kreatel’s management team and employees will remain in Sweden, with their operations integrated into Motorola’s connected-home-solutions business.