Google will 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.
For Google, the deal helps it dispose of some of the assets of Motorola Mobility, which it acquired last year for about $12.5 billion. That acquisition also included approximately 24,500 patents and patent applications from Motorola, along with the Motorola mobile handset business.
The acquisition will be on a cash-free, debt-free basis. Google will receive $2.05 billion in cash and approximately $300 million in newly issued ARRIS shares.
“This transformational combination of two complementary businesses will create a leading end-to-end provider of today’s video, data and voice products and tomorrow’s next-generation IP-based broadband products,” said Bob Stanzione, Chairman and CEO of ARRIS. “Ever-expanding consumer demand for bandwidth will continue to drive growth across cloud and network technologies we provide that enable innovative home entertainment products and services.”
