updated 07:23 pm EST, Wed December 19, 2012
Google gains 15.7 percent stake in ARRIS in already-approved sale
Communications technology company ARRIS Group and Google today jointly announced that ARRIS and Google subsidiary Motorola Mobility have entered into an agreement under which ARRIS will acquire the Motorola Home business from Motorola Mobility for $2.35 billion in a combined cash and stock transaction. The sale has already been approved by the boards of directors of both companies.
The transaction is expected to close by the second quarter of 2013, subject to federal regulatory approvals and closing conditions. Google is retaining the mobile business and patent library it acquired in the purchase of Motorola Mobility. Under the terms of the agreement, Google will receive $2.05 billion in cash and approximately $300 million in newly issued ARRIS shares, subject to adjustments provided for in the agreement, representing an approximately 15.7 percent ownership interest in ARRIS.
The transaction will increase ARRIS' patent portfolio and provide a license to a wide array of Motorola Mobility patents. The combined entity will offer a wide array of products and solutions and will have an expanded customer base encompassing broadband content and service providers.