Print 9 comment(s) - last by Tapuziel.. on Dec 20 at 2:01 PM

The deal includes cash and stock

Rumors started surfacing early this month that Google was looking to shed the Motorola Home business division after its purchase of Motorola Mobility. Google's goal was to help focus its Motorola Mobility holdings on smartphones and tablets. Motorola announced this week that it has now entered into an agreement to sell off the Home business to a company called Arris.

Arris is paying Google $2.35 billion in cash and stock and the transaction has been approved by the Board of Directors for both companies. The acquisition is on a cash-free, debt-free basis.

The agreement will see Google receiving $2.05 billion in cash and approximately $300 million in newly issued Arris stock shares. The deal is subject to certain adjustments provided for in the agreement and will result in Google owning 15.7% interest in Arris after the deal closes.

Arris says that the purchase of Motorola Home will give it a global presence with over 500 customers in 70 countries. The company also plans to offer a wide array of products and solutions encompassing the full spectrum of broadband content and service providers.

Sources: Motorola Mobility, Arris [PDF]

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By Tapuziel on 12/20/2012 9:53:49 AM , Rating: 0
Who the puck is Arris?

RE: Arris?
By morgan12x on 12/20/2012 10:00:56 AM , Rating: 3
They're one of the bigger players in the cable TV headend equipment arena. I also see a lot of their stuff deployed in telecom gateways for routing and such. I would assume this aquisition is part of a larger strategy to produce CPE to go with their headend equipment. That way they can sell a whole package type system.

RE: Arris?
By StevoLincolnite on 12/20/2012 10:03:32 AM , Rating: 2
RE: Arris?
By DanNeely on 12/20/2012 10:06:33 AM , Rating: 2
They're a company that provides telecoms hardware to cable companies. Last year they had just over a billion dollars in revenue; and are on track for about $1.3bn this year.

Buying Motorola's modem division will help them diversify their customer base. It was reported elsewhere that currently their two biggest customers are responsible for half of their revenue; after the deal goes through it will take their 5 biggest customers to reach the same 50% threshold.

RE: Arris?
By Tapuziel on 12/20/2012 2:01:36 PM , Rating: 2
Yes, I too can Google.

I just couldn't resist the song reference.

"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan

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