The US Department of Justice has given its approval to the proposed acquisition by ARRIS of Google’s Motorola Home business for US$ 2.35bn, meaning that all regulatory hurdles have now been cleared.
The transaction is expected to be completed “on or about” April 17th of this year – so it looks reasonably certain the Motorola’s set-top box business will come under the management of Atlanta-based ARRIS by the end of the month.
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.
Despite its successful swoop however, there is thought to be a big job ahead for ARRIS if it is to wring full value from this acquisition: in the 14 months since Google acquired Motorola Mobility, its dominant position in the US set-top box market has been steadily eroded by rivals such as Cisco.