ARRIS will sell approximately 10.6 million shares of its common stock, valued at $150.0 million, to Comcast in order to raise money for its previously announced acquisition of the Motorola Home business, which is currently owned by Google.
Under the deal, the ARRIS shares issued to Comcast will reduce, on a share-for-share basis, the number of shares of ARRIS stock to be issued to Google and simultaneously increase the cash consideration to be received by Google by $150.0 million. The total purchase price remains the same. Following the close of the deal, Comcast and Google will each own approximately 7.85% of the outstanding ARRIS shares post-closing based on ARRIS’ current capitalization.
“We are very pleased that Comcast has agreed to make this significant investment in ARRIS,” said Bob Stanzione, Chairman and CEO of ARRIS. “We believe this investment by one of our largest customers is a strong indication of customer support for the Motorola Home acquisition and its potential to accelerate innovation to the benefit of the industry and consumers.”
http://www.arrisi.com
http://www.comcastcorporation.com
- In December, Google agreed to sell its Motorola Home Business to ARRIS for $2.35 billion in cash and stock.
- Motorola Home is a leading global supplier of digital video and IPTV hardware and
software solutions for the cable, telecom, broadcast & satellite markets. The Motorola Home division, which is based in Horsham, PA, had revenues of approximately $3.4 billion over the past 4 quarters and about 5,000 employees. The company is profitable. - ARRIS reported revenue of approximately $1.3 billion over the past 4 quarters. It has approximately 2,100 employees and is based in Suwanee, Georgia.
- For ARRIS, the acquisition effectively triples its overall revenue, brings an enhanced product portfolio, a larger customer base, and strengthened relationships with cable operators and broadband service providers worldwide. The deal also includes the transfer of certain Motorola patents related to the business.