Arris Seals Up $2.35B Motorola Home Deal
Arris CEO Says Leadership Team of the Newly Combined Company will be
Revealed Thursday
By: Jeff Baumgartner
Multichannel News
Apr 17 2013 - 10:39am
http://www.multichannel.com/distribution/arris-seals-235b-motorola-home-deal/142767
It's done.
Arris Group closed its $2.35 billion acquisition of Motorola Mobility’s
Home unit from Google Wednesday morning, sealing up a deal that will
make Arris the nation’s largest set-top supplier and put it in position
to compete more directly with Cisco Systems.
Arris paid Google about $2.2 billion in cash and issued Google 10.6
million shares of its common stock in connection with the deal. Part of
the deal was funded through the sale of 10.6 million shares to Comcast,
Arris’s largest customer. As a result, Google and Comcast now each hold
7.7 percent stakes in Arris, but do not have board seats.
Arris intends to announce the new leadership structure of the newly
combined company on Thursday, April, 18, Arris chairman and CEO Bob
Stanzione told Multichannel News, in an interview. Former Charter
Communications CTO Marwan Fawaz has led Horsham, Pa.-based Motorola Home
since June 2012.
Wednesday’s close comes about four days after the U.S. Department of
Justice cleared the deal, which was announced on Dec. 19, 2012. At the
time, Arris estimated that the combined company would generate annual
cost synergies in the range of $100 million to $125 million.
From the start, Arris has stressed that the acquisition of Motorola
Home would be “transformative” for the company, enabling it to establish
itself as an end-to-end supplier of broadband and video equipment for a
more diverse set of service providers.
“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 multiscreen
delivery chain – from network infrastructure, to transport, to user
experience,” Stanzione said, in a statement. “The new Arris has the
expertise to transform the industry.”
Evercore Partners acted as the lead financial advisor, with Troutman
Sanders acting as lead legal counsel to Arris on the transaction. Bank
of America Merrill Lynch also advised Arris. Barclays was the financial
advisor and Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel
to Google. RBC Capital Markets acted as joint lead arranger, joint
bookrunner and syndication agent in financing for the transaction.
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