It may be only a regulatory hiccup, but Arris' (Nasdaq: ARRS) plan to buy Google's (Nasdaq: GOOG) Motorola Home unit for $2.35 billion in cash and stock isn't a done deal in the eyes of the U.S. Department of Justice (DoJ).
According to a story in Multichannel News, the DoJ has asked for unspecified information about the deal in conjunction with its review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
That's at least the word from Arris, which said it has nothing to hide and, while not necessarily welcoming the additional scrutiny and delay, understands what's going on.
"Arris believes the transaction is pro-competitive and will create compelling new opportunities for its customers and partners worldwide," according to an Arris statement carried by the publication. "Close scrutiny is typical in transactions of this size."
Close scrutiny also slows the approval process and means it will be awhile before Arris can take over the set-top and other equipment related business from Google. At the least, the so-called second request extends the waiting period until 30 days after each company has complied with the request, "unless the period is extended voluntarily by the companies or terminated sooner by the DoJ," the story said.
Naturally, both parties are planning to respond quickly and will "continue to work cooperatively with the DoJ in connection with this review," Arris said.
Arris, which announced the deal last December, is already working to blend two historic cable equipment vendors into a single unity and still hopes to close the deal in the second quarter. In addition to acquiring the Motorola unit, which Google was eager to shed as it concentrated on Motorola Mobility and a bevy of wireless patents, Arris also said it would sell Comcast (Nasdaq: CMCSA) about $150 million in stock, giving the top MSO a 7.85 percent ownership stake in Arris.
- Multichannel News had this story
Arris selling shares to Comcast as part of Motorola acquisition
Google's Motorola Home set-top box biz goes to Arris for $2.35B