US firm ARRIS, a provider of broadband media technology, has entered into an agreement to sell approximately 10.6mn shares of its common stock valued at US$ 150mn to Comcast.
The deal is said to have been made in connection with the US$ 2.35bn acquisition by ARRIS of the Motorola Home business from Motorola Mobility, a subsidiary of Google.
The sale of shares to Comcast is expected to reduce the number of shares of ARRIS stock to be issued to Google whilst simultaneously increasing the amount of cash owed to the Internet services giant by US$ 150mn. As a result, Comcast and Google will each own approximately 7.85% of the outstanding ARRIS shares.
“We are very pleased that Comcast has agreed to make this significant investment in ARRIS,” said Bob Stanzione, Chairman and CEO of ARRIS. “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.”
Editor’s view: This deal potentially brings big benefits to Comcast, such as early access to new Moto Home technology, and may also affect the relationship its rivals have with one of their key CPE suppliers.