In a move that would shake up the cable technology playing field, Arris Group has agreed to pay Google $2.35 billion in cash and stock to buy Motorola Mobility's Home business.
According to Arris, the acquisition will be on a cash-free, debt-free basis and is expected to be significantly accretive to the company's non-GAAP earnings starting in the first full year after closing. The deal, if completed, would result in a company with three times Arris's current revenue run rate.
Under the terms of the deal, announced late Wednesday, upon closing of the transaction Google will receive $2.05 billion in cash and approximately $300 million in newly issued Arris shares, subject to certain adjustments provided for in the agreement. The deal would give Google an ownership stake of about 15.7% in Arris.