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ARRIS
Group, Inc.
ARRS, a global innovator in broadband media technology,
and Google Inc.
GOOG today jointly announced that ARRIS and Motorola
Mobility, a Google subsidiary, have entered into a definitive agreement under
which ARRIS will acquire the Motorola Home business from Motorola Mobility,
for $2.35 billion in a cash-and-stock transaction approved by the Boards of
Directors of both companies. The acquisition will be on a cash-free,
debt-free basis and is expected to be significantly accretive to ARRIS'
Non-GAAP earnings starting in the first full year after closing.
Under the terms of the agreement, upon closing of the transaction, Google will
receive $2.05 billion in cash and approximately $300 million in newly issued
ARRIS shares, subject to certain adjustments provided for in the agreement,
representing an approximately 15.7% ownership interest in ARRIS post-closing.
Acquiring Motorola Home will enhance ARRIS' ability to provide next-generation
consumer video products and services, supporting a more comprehensive product
offering while also accelerating its ability to deliver a comprehensive set of
industry-leading new products for broadband to a wide spectrum of customers.
The transaction will increase ARRIS' patent portfolio and provide a license to
a wide array of Motorola Mobility patents.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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