The deal calls for Motorola to pay $1.80 a share for the Santa Clara, Calif., tech shop. The price is slightly below the $1.84 level where the stock ended Friday after a late-day surge.
Motorola plans to add Terayon to its cable-gear-making unit. Terayon's video processing technology helps with features such as allowing telcos and cable companies to insert ads into videos.
Motorola shares have declined 11% this year as the company struggles with a slump in its mobile phone business.
Terayon was a highflying stock around the turn of the century when some stock-pickers and industry analysts placed their confidence on the company's breakthrough video technology. Adjusting for a stock split, the shares once traded at $115 in February 2000, just prior to the
The company discovered accounting errors dating back to 2000 and had to restate several years of financial reports. Terayon was delisted from the Nasdaq a year ago for its delinquent filings. The company has always operated in the red and as of the end of last year had an accumulated deficit of $1.1 billion.