Comcast pumps $150M into Arris
In a stock deal with one of its main suppliers, Comcast has agreed to pay $150 million for a stake in Arris.
Comcast will acquire 10.6 million shares in Arris, and the deal will be completed in concert with Arris’ $2.35 billion purchase of Google’s Motorola Home division that was announced last month.
Once the dust settles, Comcast and Google will both own about 7.85 percent of Arris’ outstanding common stock. Comcast is one of Arris’ main customers, with large purchases of its set-top boxes and voice and high-speed data equipment.
The agreement will increase the cash consideration to be received by Google by $150 million while reducing the number of shares that were slated to be received by Google.
“We are very pleased that Comcast has agreed to make this significant investment in Arris,” said Arris Chairman and CEO Bob Stanzione. “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.”
Arris and Google previously said they expected their deal to close by April.