Motorola Acquires Netopia To Beef Up Its Connected Home Strategy

Motorola reported Tuesday that it will acquire equipment maker Netopia for about $208 million as it continues to position itself to take advantage of the wholesale move by telecom companies into the digital home of the future.

Netopia supplies a broad spectrum of broadband end-user gear to telecom carriers, many of which are in the process of upgrading to high-speed data and fiber links. Included among Netopia's major customers, all in the process of upgrading their consumer networks, are AT&T, Bellsouth, Covad Communications, and Swisscom.

In supplying a full range of products for DSL networks, Netopia has developed products that deliver voice, video, data, and other advanced services to both residential and business customers.

"Motorola and Netopia share a common vision of the connected home as the hub for seamless mobility," said Dan Moloney, president of Motorola Connected Home Solutions, in a statement. "This acquisition advances our vision by strengthening the Connected Home Solutions business position as a leading supplier of technology and services to telecom providers worldwide."

Motorola said the acquisition will let it offer new products, including home media hubs, voice gateways, and IP set-tops. Netopia will be integrated into Moloney's Connected Home Solutions unit, and Netopia president and CEO Alan Lefkof will report to Moloney.

In a separate announcement Tuesday, Netopia reported a net loss of $3.6 million on revenues of $113.3 million for the fiscal year ending Sept. 30.