Google To Sell Motorola Home

Google To Sell Motorola Home

Article presented by Intellectsoft - Mobile application development company.

Google Corp. has agreed to sell its Motorola Home department of Motorola Mobility subsidiary to an American provider of telecommunications solutions - Arris Group - for 2.35 billion dollars. This information is provided in the official report.

Under the terms of Google, which owns Motorola Mobility since May of 2012, the company will receive $2.05 billion in cash and approximately $300 million in the form of Arris shares, which would correspond to about 15.7% share after the completion. It is planned to close the deal in the II quarter of 2013. The approval of the board of directors of both sides has been already received.

Motorola Home department is engaged in production of integrated solutions for cable operators, including subscriber devices to implement a system for IP-TV. In addition, the team releases solutions for management and automation for a "smart" home.

Motorola Home became a Google’s part after the acquisition of other assets of Motorola Mobility for $ 12.5 billion, however, the business is not of interest for the search giant.

"Google has never needed a business to produce set-top boxes - Pivotal Research Group analyst Brian Wiesler comments. - All they needed (from Motorola Mobility) is patents on mobile technology."

Motorola Home is a profitable business and for the last four quarters, it brought $ 3.4 billion of revenue. It is expected that the purchase of this business will increase revenue of the Arris Company for more than 3 times (up to $ 4.7 billion).

In addition, with the purchase of Motorola Home, Arris will get about two thousand patents of Motorola from this field.

According to the official report, thanks to Motorola Home Arris company can bring products to market faster, expand its customer base and strengthen its position in the market of equipment for digital television. Together with Motorola Home it is able to serve more than 500 corporate customers in 70 countries all over the world.

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