SCHAUMBURG, Ill.-Motorola Inc. said it will shell out $192 million to acquire TTP Communications plc, a U.K.-based mobile software developer and chipmaker.
TTPCom is a 575-employee holding company with substantial stakes in a handset certification business, and also sells software for GSM and GPRS handsets and infrastructure. The company also has notable intellectual property holdings in wireless. But analysts say the key to the deal is TTPCom’s AJAR platform, which is used in mass-market 2G and 3G phones.
“We believe Motorola is acquiring TTPCom to simplify the design cycle of its low-end handsets and to provide more features and functionality to its carrier customers without accruing meaningful R&D costs,” CIBC World Markets opined.
CIBC believes Motorola hopes to make AJAR its “default platform” for low-end handsets and will license the software to other manufacturers.
TTPCom will retain its Cambridge headquarters, and Chief Executive Officer Tony Milbourn will stay on and direct engineering, product development and product management efforts. Rob Shaddock, chief technology officer of Motorola’s Mobile Devices Group, will oversee the operation.
Shares of Motorola inched upward following the news, climbing 18 cents, or less than 1 percent, to $21.27.
