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.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.