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Motorola quietly ditches cable modem unit

Microscope contributor


Motorola has quietly sold off its European cable modembusiness, EuroDOCSIS, to the networking division of Taiwanese electronicsmanufacturer Compal.

 

The deal extends an already existing customer-relationshipbetween the two firms; Compal has a contract to supply voice modems to Motorola.

 

Financial terms of the deal were not officially disclosed,but Compal is thought to have done well out of the deal, paying under $10m(£6.15m) for the unit, as well as gaining access to several large customers inEurope.

 

According to Reuters, analysts at Avian Securities suggestthe unit makes sales of about $50m per annum.

 

Earlier this week, Compal, which is one of the world’slargest suppliers of notebooks, reported renewed demand for laptop computers inthe market, and is targeting steadier growth for 2010.


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