ActiveTelco's IP telephony and messaging technology is expected to enhance Tut's next-gen IntelliPOP multiservice platform

December 28, 2000

1 Min Read

PLEASANTON, Calif. -- Tut Systems, Inc. (Nasdaq: TUTS), a leading provider of multi-service broadband systems for the multi-tenant unit (MTU) market, today announced it has signed a definitive agreement to acquire privately-held ActiveTelco, Inc. of Fremont, California. ActiveTelco provides next generation IP telephony and messaging solutions built on its software and hardware platform for telecommunications service providers. ActiveTelco's technology is expected to enhance Tut's next generation IntelliPOP multi-service platform by allowing service providers to offer additional voice and telephony services to their customers.

Under the terms of the agreement, a combination of Tut common stock and options to purchase common stock with an expected aggregate value of approximately $2.9 million will be issued to the shareholders of ActiveTelco. In addition, Tut agreed to pay off convertible notes in the amount of $650,000, plus accrued interest and to assume the liabilities of approximately $500,000. This acquisition is expected to be accounted for as a purchase. Closing of the transaction is subject to certain conditions and regulatory filings.

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