Alcatel-Lucent announced it has agreed to acquire broadband and mobile data service management provider Motive, for about $67.8 million.
The two said the acquisition extends a 3-year relationship, whereby the two companies have jointly developed and sold remote management software solutions for automating the deployment, configuration and support of home networking devices. Together the two have more than 40 joint customers, including AT&T, Verizon, BT, Vodafone Portugal and Swisscom. Alcatel-Lucent also resells Motive’s solutions that help service providers integrate voice, video and data into a single, connected experience.
“Motive has always been an innovator in helping service providers shorten service activation time and increasing customer satisfaction with broadband services,” Luis Martinez Amago, president of Alcatel-Lucent’s fixed access activities, said in a statement. “Integrating Motive’s broadband and mobile service management expertise with our portfolio of wireline and wireless access technologies will allow customers to offer a new generation of complex services, blurring the boundaries between fixed and mobile networks, and increasing customer retention without adding operational complexity.”
Motive has 300 employees worldwide with R&D operations in Austin, Texas, and Bangalore, India, and will become part of Alcatel-Lucent’s Fixed Access Division within its Carrier Business Group.
The purchase price of $2.23 per share represents a premium of about 53% over the closing price of the shares on June 16 and a premium of about 51% over the average closing price of the shares for the 90 days prior to June 16. The transaction is expected to close early in the fourth quarter.