Telecom equipment manufacturer Arris Group has just announced that it will acquire the Home division of Motorola from Google, for a total of $2.35 billion in cash and stock. The sale of the division had been predicted from basically the day Google announced its purchase of Moto, and in recent weeks was all but confirmed.
As part of the deal, Google will gain a 15.7% share of Arris Group. The Motorola Home division encompasses products like set top boxes, broadband modems, landline phones, and (apparently) baby monitors.
While some have criticized Google's decision to sell off Moto's modem and TV manufacturing arm, it makes complete sense: even a wide expansion of Google Fiber wouldn't require a $2 billion+ set top box business, and I doubt Google has any interest in manufacturing modems for the likes of Comcast or Verizon. Or baby monitors.
Motorola CEO Dennis Woodside had this to say:
The industry faces its biggest technology transformation, and together ARRIS and Motorola will be able to accelerate related innovations such as the introduction of the IP Connected Home environments that service providers need and that their consumers crave.
The deal is expected to wrap up in mid-2013.