Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

RELATED NEWS
Trade ARRS now with 

ARRIS Group Inc. (ARRS: Quote) 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.

Register
To receive FREE breaking news email alerts for Arris Group Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
After moving modestly higher in morning trading, stocks showed a substantial move to the downside over the course of the trading day on Wednesday. The major averages pulled back well off their highs for the session, sliding firmly into negative territory. Ebola "czar" Ron Kain is scheduled to meet with President Barack Obama on Wednesday as he begins his efforts to coordinate the government's response to the deadly disease. Klain, who previously served as chief of staff to Vice President Joe Biden and then-Vice President Al Gore, was named as Ebola Response Coordinator last Friday. Potentially complicating the outlook for control of the Senate, the results of a SurveyUSA poll conducted for WXIA-TV in Atlanta suggest that the Georgia Senate race between Republican David Perdue and Democrat Michelle Nunn could be headed for a runoff.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.