Motorola Inc. signed an agreement to acquire Modulus Video Inc., the companies announced May 17.

Modulus, a privately held company based in Sunnyvale, Calif., provides compression systems used to deliver video content in the IPTV, cable, broadcast and satellite marketplaces.
Modulus has partnered with Motorola for more than two years to develop encoding solutions for customers around the globe.

Modulus will operate as a wholly owned subsidiary of Motorola and be integrated into the Motorola Home & Networks Mobility business.

Terms of the transaction, expected for completion no later than the third quarter, were not disclosed.