dfan14a
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
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þ Soliciting Material Pursuant to §240.14a-12
Tut Systems, Inc.
(Name of Registrant as Specified In Its Charter)
Motorola, Inc.
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
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Filed by Motorola, Inc.
Pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: Tut Systems, Inc.
Commission File No.: 000-25291
Motorola To Acquire Tut Systems, Inc., Expand Portfolio of Next-Generation IPTV Video
Processing and Distribution Capabilities
SCHAUMBURG,
Ill. and LAKE OSWEGO, Ore. 21 DEC 2006 Motorola, Inc. (NYSE: MOT) and Tut
Systems, Inc. (Nasdaq: TUTS) today announced that the two companies have signed a definitive merger
agreement, under which Motorola will acquire all of the outstanding shares of Tut Systems common
stock for $1.15 per share in cash. The transaction has a total equity value of approximately $39
million on a fully-diluted basis.
Tut Systems provides carrier-class end-to-end digital video encoding, processing and distribution
products. Their solutions support MPEG-2 and MPEG-4 AVC video compression, local ad insertion,
forward error correction, and real-time conditioning of video and audio. Today, more than 160
service providers worldwide deliver IPTV powered by Tut Systems digital video distribution
technology.
The integration of Tut Systems solutions with Motorolas industry-leading digital video delivery
solutions will expand Motorolas ability to help service providers deploy advanced video services
over IP, ATM, or RF-based network architectures. Motorola currently has deployed 2060 digital video
networks and over 50 million digital video set tops worldwide.
This transaction brings together the telco-aware IPTV processing capabilities of Tut Systems with
Motorolas proven video delivery expertise. Together, our combined portfolio will provide service
providers with next-generation solutions for delivering rich video experiences into the connected
home and out into the world, said Dan Moloney, President, Motorola Connected Home Solutions.
We look forward to adding the great people, technology and video expertise of Tut Systems to the
Motorola Connected Home Solutions team.
Today is an exciting day for Tut Systems. Our stockholders will be able to receive value for
their investment, while our employees, customers and strategic partners will benefit as we join
together with Motorola, an established, global leader in architecting and deploying digital and IP
video networks, said Sal DAuria President and CEO of Tut Systems. Motorolas financial resources
and customer relationships will enable us to address larger customer opportunities that were
challenging as a smaller company. My team is committed to working closely with Motorola to ensure
a rapid and seamless transition.
Upon completion of the transaction, Tut Systems will become a wholly-owned subsidiary of Motorola
and will be integrated into the Motorola Connected Home Solutions business. Motorola intends to
maintain Tut Systems operations in Lake Oswego, Oregon, San Diego, California and Pleasanton,
California.
The transaction is expected to be neutral to Motorolas earnings per share in the first year
following closing, excluding certain non-cash charges relating to amortization associated with
acquired intangibles and other one-time accounting and transaction-related costs. The transaction
is subject to customary closing conditions, including regulatory approvals and the approval of Tut
Systems stockholders, and is expected to be completed in the first quarter of 2007.
About Tut Systems, Inc.
Tut Systems, Inc. delivers advanced content processing and distribution products as well as
comprehensive system integration services for deploying next-generation data and video services
over broadband networks. Service providers, content providers and government agencies worldwide use
Tut
Systems solutions to deliver broadcast-quality video over broadband networks.
Tut Systems is headquartered in Lake Oswego, OR. For more information, visit www.tutsys.com or call
(971) 217-0400.
About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband
communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed
to helping you get and stay connected simply and seamlessly to the people, information, and
entertainment that you want and need. We do this by designing and delivering must have products,
must do experiences and powerful networks along with a full complement of support services. A
Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in
2005. For more information about our company, our people and our innovations, please visit
http://www.Motorola.com.
Forward Looking Statements
Certain statements contained in this press release, including the expected timetable for completing
the proposed transaction between Motorola and Tut Systems, future financial and operating results,
benefits and synergies of the transaction, future opportunities for the combined company and
products, any other statements regarding Motorolas or Tut Systems future expectations, beliefs,
goals or prospects, the near-term impact of the transaction on Motorolas earnings per share, and
any statements that are not statements of historical facts might be considered forward-looking
statements. While these forward-looking statements represent managements current judgment of
future events, they are subject to risks and uncertainties that could cause actual results to
differ materially from those stated in the forward-looking statements. Important factors that could
cause actual results or events to differ materially from those indicated by such forward-looking
statements, include: (i) the parties ability to consummate the transaction; (ii) the conditions to
the completion of the transaction may not be satisfied, or the regulatory approvals required for
the transaction may not be obtained on the terms expected or on the anticipated schedule; (iii) the
parties ability to meet expectations regarding the timing, completion and accounting and tax
treatments of the transaction; (iv) the possibility that the parties may be unable to achieve
expected synergies and operating efficiencies within the expected time-frames or at all; (v)
Motorolas ability to successfully integrate Tut Systems operations and technology into those of
Motorola and the possibility that such integration may be more difficult, time-consuming or costly
than expected; (vi) revenues following the transaction may be lower than expected; (vii) operating
costs, customer loss and business disruption (including, without limitation, difficulties in
maintaining relationships with employees, customers, clients or suppliers) may be greater than
expected following the transaction; (viii) the retention of certain key employees at Tut Systems;
and (ix) the other factors described in Motorolas Annual Report on Form 10-K for the year ended
December 31, 2005 and its subsequent reports filed with the SEC, and Tut Systems Annual Report on
Form 10-K for the year ended December 31, 2005 and its subsequent reports filed with the SEC.
Motorola and Tut Systems assume no obligation to update or revise any forward-looking statement in
this press release, and such forward-looking statements speak only as of the date hereof.
Additional Information about the Proposed Transaction
In connection with the proposed transaction and required stockholder approval, Tut Systems will
file with the SEC a preliminary proxy statement and a definitive proxy statement. The definitive
proxy statement will be mailed to the stockholders of Tut Systems. TUT SYSTEMS STOCKHOLDERS ARE
URGED TO READ THE PROXY STATEMENT AND OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND TUT SYSTEMS. When these
documents become available, investors and security holders may obtain free copies of these
documents and other documents filed with the SEC at the SECs web site at www.sec.gov. In addition,
investors and security holders may also obtain free copies of the documents filed by Tut Systems
with the SEC by going to Tut Systems Investor Relations page on its corporate web site at
www.tutsystems.com.
Tut Systems and its officers and directors may be deemed to be participants in the solicitation of
proxies from Tut Systems stockholders with respect to the proposed acquisition. Information about
Tut Systems executive officers and directors and their ownership of Tut Systems common stock is
set forth in the proxy statement for Tut Systems 2006 Annual Meeting of Stockholders, which was
filed with the SEC on
April 18, 2006. Investors and security holders may obtain more detailed information regarding the direct
and indirect interests of Tut Systems and its respective executive officers and directors in the
acquisition by reading the preliminary and definitive proxy statements regarding the acquisition,
which will be filed with the SEC.
In addition, Motorola and its officers and directors may be deemed to be participants in the
solicitation of proxies from Tut Systems stockholders in favor of the approval of the proposed
acquisition. Information concerning Motorolas directors and executive officers is set forth in
Motorolas proxy statement for its 2006 Annual Meeting of Stockholders, which was filed with the
SEC on March 10, 2006. This document is available free of charge at the SECs web site at
www.sec.gov or by going to Motorolas Investor Relations page on its corporate web site at
www.motorola.com.
# # #
Media Contacts:
Jennifer Erickson
Motorola
+1-847-435-5320
Jennifer.Erickson@motorola.com
Keith J. Wymbs
Tut Systems, Inc.
+1-971-217-0363
kwymbs@tutsys.com
MOTOROLA and the Stylized M Logo are registered in the US Patent and Trademark Office. All other
product or service names are the property of their respective owners. © Motorola, Inc. 2006