Arris to acquire Motorola Home for USD 2.35 bln

News Video Global 20 DEC 2012
Arris to acquire Motorola Home for USD 2.35 bln
Arris has won the bidding to acquire the Motorola Home business from Google. Arris will pay USD 2.05 billion in cash and USD 300 million in new shares for the activities, giving Google a 15.7 percent stake in Arris after closing. The acquisition will be on a cash- and debt-free basis and is expected to be "significantly accretive" to Arris' adjusted earnings in the first full year after closing. 

In addition to the set-top box and video delivery operations of Motorola, Arris will acquire a number of patents and gain a licence to other Motorola Mobility patents. The deal boosts Arris' customer base to over 500 customers in 70 countries and will see its annual sales more than triple to USD 4.7 billion. Arris also expects USD 100-125 million in annual cost synergies from the takeover. 

The transaction is expected to close by the second quarter of 2013. Pace was the other declared bidder for the set-top box activities. 

Categories:

Video,  Internet

Companies:

Arris,  Google,  Motorola Mobility

Regions:

Global

Tags:

Consumer devices, Network equipment, Wholesale, M&A buyouts & divestments

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