logo
Share SHARE
FONT-SIZE Plus   Neg

ARRIS To Acquire Google' Motorola Home Business For $2.35 Bln In Cash & Stock

ARRIS Group Inc. (ARRS) a broadband media technology company, said it entered a definitve agreement to acquire the Motorola Home business, from Motorola Mobility, a Google subsidiary for $2.35 billion in a cash-and-stock deal.

The acquisition, which shall be on a cash-free and debt-free basis, is expected to be significantly material to ARRIS' Non-GAAP earnings in the first full year after its closure.

The acquisition which is expected to close by the second quarter of 2013, upon closure will see Google receive $2.05 billion in cash and about $300 million in freshly issued ARRIS shares, representing nearly a 15.7 percent ownership interest in ARRIS.

The acquisition will enable ARRIS to provide improved consumer video products and services and increase ARRIS' patent portfolio and help license a wide array of Motorola Mobility patents.

Motorola Home generated revenues totaling $3.4 billion for the four quarters ended September 30, 2012.

The cash part of the payment to Google at closing, will be funded through debt financing commitments from Bank of America Merrill Lynch and Royal Bank of Canada, said ARRIS in a statement.

In addition, ARRIS said that along with Motorola Home it shall have a presence in 70 countries with over 500 customers. The combination is expected to generate approximately $100 - $125 million in annual cost synergies.

For the acquisition, Evercore Partners is serving as lead financial advisor and Troutman Sanders is serving as the legal counsel to ARRIS, while Bank of America Merrill Lynch is also serving as an advisory.

Meanwhile, Barclays is serving as the financial advisor and Cleary Gottlieb Steen & Hamilton LLP is acting as the legal counsel to Google for the deal.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Alteryx, Inc., a provider of self-service data analytics software, is the latest tech company to go public in March. Alteryx said it has priced its IPO of 9 million shares of its Class A common stock at $14 per share, at the top end of its range of $12 to $14 per share. Dunkin' Donuts is bidding adieu to one of its frozen coffee beverages this summer. However, loyal fans of the decades-old menu staple have not taken kindly to the news. The coffee chain said it will discontinue its popular Coffee Coolatta beverage this summer and instead, introduce the new Frozen Dunkin' Coffee, made with coffee extract, sugar and milk. Canadian pipeline operator Enbridge Inc. said it will cut about 1,000 jobs, or six percent of its workforce, following the completion of its acquisition of Houston-based Spectra Energy Corp. The job cuts will take place across the merged company.
comments powered by Disqus
Follow RTT