US firm ARRIS has completed its acquisition of the Motorola Home business from a subsidiary of Google for around US$ 2.2bn, and confirmed its intention to make the unit a global player in video delivery and broadband technology.
The company will be led by a management team of top executives from both companies, whose remit will include transforming how service and content providers deliver entertainment and communications.
In addition to the cash consideration, ARRIS also issued Google with 10.6mn shares of its common stock, meaning that Google and cable operator Comcast now each hold a 7.7% stake in ARRIS.
Bob Stanzione, Chairman and CEO of ARRIS, said: “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. The new ARRIS has the expertise to transform the industry.”
Google acquired the Motorola Home business through its US$ 12.5bn purchase of Motorola Mobility in May of last year, which gave it ownership of one of the world’s major providers of set-top boxes and customer premises equipment to the cable industry.
Motorola Home generated revenues of US$ 3.4bn for the 12 month period ended September 30th, 2012. The combination with ARRIS Group is expected to generate approximately US$ 100-125mn in annual cost synergies.