ARRIS Group, a Suwanee-area media technology company, struck a deal Wednesday to acquire the home business of Google’s Motorola Mobility subsidiary for $2.35 billion in cash and stock.
Google would gain a nearly 16 percent stake in ARRIS, the companies said.
It’s possible the deal could add to the size of ARRIS’ workforce in metro Atlanta, where the company has about 450 employees, spokesman Alex Swan said Wednesday. The company, which has its headquarters in Forsyth County, has 2,100 employees worldwide.
ARRIS provides video products and services to residential and business customers. Motorola Home makes cable-TV boxes and other equipment for home entertainment. ARRIS will be able to improve networking equipment it sells to cable TV providers
“This transformational combination of two complementary businesses will create a leading end-to-end provider of today’s video, data and voice products, and tomorrow’s next-generation IP-based broadband products,” Chairman and CEO Bob Stanzione said in a statement. ARRIS also will have access to some of Motorola’s more than 17,000 mobile patents.
Google will receive $2.05 billion in cash and about $300 million in newly issued ARRIS shares.
ARRIS and Motorola Home will have more than 500 customers in 70 countries.
Motorola Home generated revenues of $3.4 billion for the four quarters ended Sept. 30. Its combination with ARRIS is expected to generate about $100 million to $125 million in annual cost savings, the companies said.
The deal comes seven months after Google completed its $12.4 billion purchase of Motorola Mobility.
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