Motorola Buy Boosts Optical Portfolio

HORSHAM, Pa., Nov 20 -- Motorola Inc. has agreed to acquire Synchronous Inc. for about $260 million in stock in a move to bolster its optical networking product portfolio. Synchronous makes optical networking systems that improve the transmission of video, voice and data services at high speeds. The deal will expand Motorola's product mix and allow it to offer high-speed network operators a way to increase the capacity of existing networks by boosting the efficiency, quality and distance of signals sent over fiber optic cable.

Under the deal, which is expected to close in late 2001 or early 2002, Motorola will acquire Synchronous' optical networking technology, including its dense wave division multiplexing transmitter products and erbium doped fiber amplifiers, as well as a staff of over 70 research, engineering, marketing and sales professionals.