Comcast to take shares in Arris
January 15, 2013 07.44 Europe/London By Robert Briel
Arris has announced that it has entered into an agreement to sell approximately 10.6 million shares of its common stock, valued at $150.0 million, to Comcast Corporation.
The sale of the shares to Comcast will be made in connection with the previously announced Arris acquisition of the Motorola Home business from Motorola Mobility, a subsidiary of Google Inc.
As provided for in the Motorola Home business acquisition agreement, the shares issued to Comcast will reduce, on a share-for-share basis, the number of shares of Arris stock to be issued to Google and simultaneously increase the cash consideration to be received by Google by $150.0 million.
As a result of the sale to Comcast, Comcast and Google will each own approximately 7.85% of the outstanding Arris shares post-closing based on Arris’ current capitalisation.
“We are very pleased that Comcast has agreed to make this significant investment in Arris,” said Bob Stanzione, chairman and CEO of Arris, in a statement.
“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.”