Arris to acquire Motorola's home business from Google for $2.35 bn
20 Dec 2012
Broadband technology innovator Arris Group, and Google Inc today jointly announced that ARRIS and Motorola Mobility, a Google subsidiary, have entered into a definitive agreement under which ARRIS will acquire the Motorola home business from Motorola Mobility, for $2.35 billion in a cash-and-stock transaction.
The acquisition will be on a cash-free, debt-free basis and is expected to be significantly accretive to ARRIS' Non-GAAP earnings starting in the first full year after closing.
Under the terms of the agreement, upon closing of the transaction, Google will receive $2.05 billion in cash and approximately $300 million in newly issued ARRIS shares, subject to certain adjustments provided for in the agreement, representing an approximately 15.7 per cent ownership interest in ARRIS post-closing.
Acquiring Motorola home will enhance Arris' ability to provide next-generation consumer video products and services, supporting a more comprehensive product offering while also accelerating its ability to deliver a comprehensive set of industry-leading new products for broadband to a wide spectrum of customers. The transaction will increase Arris' patent portfolio and provide a license to a wide array of Motorola Mobility patents.
"This transformational combination of two complementary businesses will create a leading end-to-end provider of today's video, data, and voice products and tomorrow's next-generation IP-based broadband products," said Bob Stanzione, chairman and CEO of Arris', in a statement.
Stanzione said, "Ever-expanding consumer demand for bandwidth will continue to drive growth across cloud and network technologies we provide that enable innovative home entertainment products and services.
