Horsham-based Motorola Home sold for $2.35 billion
A Georgia technology company will buy the Horsham-based Motorola Home business from Google Inc. in a cash-and-stock transaction worth $2.35 billion.
A Georgia technology company will buy the Horsham-based Motorola Home business from Google Inc. in a cash-and-stock transaction worth $2.35 billion.
Arris Group Inc. is acquiring a business that supplies equipment, including the familiar if fading set-top box, to Comcast Corp. and other operators in the $150 billion pay-TV industry.
In buying Motorola Home, Arris would more than triple its annual revenue and workforce.
Arris reported $1.3 billion in revenue for its last four quarters, while Motorola Home generated $3.4 billion in revenue for Motorola Mobility, which Google acquired in a $12.5 billion transaction announced in August 2011.
A Motorola Home spokesman said that about 1,000 of the company's 5,000 employees work in Horsham, which is one of the company's 18 locations. Arris employs about 2,100 people worldwide.
It is unclear how the transaction may affect Motorola Home's local operations, which trace their origins to Jerrold Electronics begun by a former Pennsylvania governor in 1948.
During a conference call with analysts Wednesday evening, Arris chief financial officer David B. Potts estimated getting "annual cost synergies" of about $100 million to $125 million about 12 months after the close of the deal, expected by the second quarter of 2013.
Cost synergies often involve layoffs and eliminating duplication in various departments. Potts indicated that some of those savings could come from its supply chain, research and development, and expenses associated with sales and administration.
In response to an analyst's question about whether the company is considering eliminating some elements of the Motorola Home business, Arris chairman and chief executive officer Robert J. Stanzione said no. "We do not plan on exiting anything at this point. The product lines are quite complementary," he said.
Shares of Arris were trading higher Thursday, up 76 cents or about 5 percent, to $15.30 around noon.
Google shares were slightly higher, up 91 cents or 0.1 percent, to $721.07.
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