Compal Acquires Motorola's Cable Modem Business in Europe
January 15, 2010
Taiwanese Compal recently purchased Motorola's EMEA (Europe, the Middle East and Africa) EuroDocsis CPE (Consumer Premises Equipment) business unit, including cable modem and STB (Set Top Box) businesses, through its subsidiary Compal Broadband Network, Taiwan's Economic Daily reported on January 14. The value of the deal is estimated at around US$300 million, according to the same source. Prior to the acquisition, Motorola used to outsource orders of cable modems and STBs sold in the European market to Compal. Pursuant to the deal, Compal will also take over Motorola's incumbent European customers, including telecom operator Telefonica. On January 5, Motorola began transferring related inventory to Compal.
Meanwhile, Motorola stated that the company will continue to operate its cable modem and STB businesses in North America and the Asia Pacific region. Currently, Motorola's contract orders of cable modems and STBs sold in the North America market are outsourced to Foxconn, according again to Taiwan's Economic Daily.