2/4/2003 - Motorola, Inc. (NYSE: MOT) has acquired the assets and business of NetPlane Systems, Inc., a business of Mindspeed TechnologiesTM, the Internet infrastructure business of Conexant Systems, Inc. (NASDAQ: CNXT), in a cash transaction of an undisclosed amount. NetPlane develops networking protocol software for the control plane (specialized hardware and software, embedded in networking equipment to direct operational behavior and thus provide stable connectivity), while Motorola Computer Group provides OEMs with intelligent hardware and software OEM building blocks for next-generation networks and embedded computing applications. With the acquisition, equipment providers can reduce integration time and costs by purchasing standards-based control plane software, hardware building blocks and pre-integrated platforms from one vendor. Additionally, Motorola Computer Group will continue to expand NetPlane's source code business and support its customer base of nearly 300 OEMs worldwide.
The market impact of this acquisition is significant because OEMs can decrease development and production costs by purchasing pre-integrated platforms, freeing time to focus on their own product differentiation. "The acquisition of NetPlane Systems positions Motorola to provide our customers with superior time-to-market and leadership solutions for next-generation network products. Motorola can now deliver pre-integrated platforms saving OEMs internal development time and costs," said Wendy Vittori, vice president and general manager, Motorola Computer Group.
"With the telecom industry's focus on cost savings, we believe that pre-integrated platforms are critical to OEMs' new, sustainable product development models," said Deepak Shahane, vice president and general manager of NetPlane Systems. "NetPlane has consistently responded to the needs of network equipment manufacturers by bringing carrier-class capabilities to market through our software expertise in areas such as MPLS, GMPLS, IP Routing, ATM, Frame Relay and network simulation technologies," he said. "We've worked closely with Motorola Computer Group in the past, so we feel confident that this combination is a strategic way to broaden our customer reach and increase value by enabling OEMs to purchase pre-integrated, board-level hardware and software control plane solutions."
The two companies' complementary technologies also provide markets outside the telecom industry with improved time-to-revenue and systems integration opportunities. For example, NetPlane's control plane protocols can be integrated on CompactPCI® or VMEbus boards or Processor PMC (PrPMC) modules supplied by Motorola for applications in industrial automation and defense industries.
NetPlane Systems has 62 employees and serves network equipment manufacturers that develop products for the next-generation Internet and other data communications and telecommunications networks from locations in Westborough, Massachusetts and Hyderabad, India. Both operations will continue under the Motorola Computer Group.
About NetPlane Systems
NetPlane Systems, Inc., a business of Mindspeed TechnologiesTM, the Internet infrastructure business of Conexant Systems, Inc. (NASDAQ: CNXT), is a leading developer of portable, networking protocol software and systems for the control plane. The company's customers range from the world's leading networking manufacturers like Nortel, Lucent Technologies, Alcatel, Fujitsu, NEC, Siemens and Ericsson to emerging next generation equipment manufacturers, such as Polaris Networks and Equipe Communications. Additional information available at www.netplane.com.
Motorola Computer Group, a business unit of the Motorola Integrated Electronic Systems Sector (IESS), is leading the innovation of intelligent building blocks for standards-based embedded computing. These building blocks include open-architecture hardware, rich software and application-ready platforms that enable equipment manufacturers to quickly and cost-effectively embed leading-edge functionality into their next-generation systems. By working with Motorola, manufacturers of telecommunications, industrial automation, medical imaging, and defense and aerospace equipment can rapidly develop and deploy the systems upon which they build their applications. More information can be found at www.motorola.com/computer.
Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2002 were $26.7 billion. Motorola is a global corporate citizen dedicated to ethical business practices and pioneering important technologies that make things smarter and life better for people, honored traditions that began when the company was founded 75 years ago this year. For more information, please visit: www.motorola.com.
MOTOROLA, the Stylized M Logo are registered in the US Patent & Trademark Office.
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