Google Inc announced on Wednesday it is selling the Motorola Mobility Home unit to global communications technology company ARRIS Group Inc in a cash and stock deal valued at US$2.35 billion.
“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,” ARRIS chief executive Bob Stanzione said.
ARRIS expected the acquisition of Motorola Home to enhance its ability to provide innovative products and services for delivering video to homes.
Internet and cable service providers Comcast Corp and Time Warner Inc were the two biggest ARRIS customers prior to the acquisition, which would give the company a diverse, international customer base.
The deal also comes with a “generous patent portfolio” and technology licenses between the companies, according to ARRIS executives.
Key ARRIS product areas include in-home boxes for routing Internet data, cable video, online telephone calls and other services.
“Devices in the home are increasing,” company executives said in a conference call with analysts. “There will always be a device in the home; it will look different, it will evolve, and we will always participate in that transition.”
ARRIS and Motorola Home together will have more than 500 customers in 70 countries.
“These two great companies are really going to be a game-changer in the world of broadband,” Stanzione told analysts at the close of the call.
Google has been shedding unwanted Motorola Mobility assets since it completed its US$12.5 billion takeover of the company in May of this year.
The Internet giant’s purchase of Motorola Mobility was seen as a grab for patents to protect Google’s Android mobile operating system from legal attacks.
Google acquired 17,000 patents with the purchase of Motorola Mobility and has been strengthening its patent portfolio in the fight for dominance in the booming smartphone and tablet market.
Motorola Home boss Marwan Fawaz said his unit and ARRIS share a vision of Internet or cable services and products playing growing roles in people’s lives.
“The combination of our solutions, expert technologists and roadmaps promises to transform how service providers deliver the smart, simple connected home to consumers throughout the world,” Fawaz said.
The sale of Motorola Home came shortly after Google announced other deals to sell manufacturing operations of its Motorola Mobility unit in China and turn over management of a plant in Brazil to Singapore-based Flextronics International Ltd.
The firms said last week that Flextronics would acquire Motorola’s manufacturing operations in Tianjin, China, and assume management and operation of its plant in Jaguariuna, Brazil.
Motorola Mobility is also shutting down most of its operations in South Korea as part of a move to consolidate research.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to