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ARRIS acquires Google's Motorola Home Business for $2.35B in cash and stock

ARRIS Group (ARRS) and Google (GOOG) jointly announced that ARRIS and Motorola Mobility, a Google subsidiary, have entered into a definitive agreement under which ARRIS will acquire the Motorola Home business from Motorola Mobility, for $2.35B in a cash-and-stock transaction approved by the boards of both companies. The acquisition will be on a cash-free, debt-free basis and is expected to be significantly accretive to ARRIS' non-GAAP earnings starting in the first full year after closing. Under the terms of the agreement, upon closing of the transaction, Google will receive $2.05B in cash and approximately $300M in newly issued ARRIS shares, subject to certain adjustments provided for in the agreement, representing an approximately 15.7% ownership interest in ARRIS post-closing.