Arris’ pickup of Moto a done deal
Stick a fork in Arris’ acquisition of Motorola. Arris announced this morning that its $2.3 billion deal to buy Motorola Mobility’s Home division from Google was wrapped up.
The completion of the acquisition, which was first announced Dec. 19, came after the United States Department of Justice (DoJ) signed off on the deal on Friday. Arris had previously said it expected the deal to close “on or about April 17.”
Arris paid Google approximately $2.2 billion in cash and issued Google 10.6 million shares of its common stock in connection with the transaction. The cash portion of the deal was funded through syndicated debt financing and the sale by Arris of 10.6 million shares to Comcast, which is one of Arris’ biggest customers, in January. At the time of the announcement, the Arris shares that Comcast bought were valued at $150 million.
As a result of the securities transactions, Google and Comcast each hold approximately 7.7 percent of Arris’ outstanding shares.
“This acquisition creates a global player in video delivery and broadband technology. We are combining the industry’s top experts and technologies to create a powerful solution for the entire multi-screen delivery chain – from network infrastructure, to transport, to user experience,” said Arris Chairman and CEO Bob Stanzione. “The new Arris has the expertise to transform the industry.”
Arris didn’t provide any specific details in this morning’s press release on how Motorola’s employees and executives, including former Charter Communications CTO Marwan Fawaz, who joined Motorola Home last year, would be blended into Arris, or how over-lapping product lines, such as CCAP/CMTS, edge QAMs and cable modems, from Motorola would be folded into its lineup.
According to a story in Multichannel News, the executive leadership team for the combined companies will be announced tomorrow.
Arris will report its first quarter financial results next Wednesday.