NETGEAR, Inc. (NASDAQ: NTGR) has announced that it has completed its previously announced distribution of 62,500,000 shares of common stock of Arlo Technologies, Inc. (NYSE: ARLO) owned by NETGEAR, representing approximately 84.2% of the outstanding shares of Arlo common stock. After the completion of the distribution, NETGEAR no longer owns any shares of Arlo common stock.
The distribution was made to NETGEAR stockholders of record as of the close of business on the record date for the distribution, December 17, 2018. The distribution took place in the form of a pro rata common stock dividend to each NETGEAR stockholder of record on the record date. Based on the shares of NETGEAR common stock outstanding as of the record date, NETGEAR stockholders received 1.980295 shares of Arlo common stock for every share of NETGEAR common stock held as of the record date.
No fractional shares of Arlo common stock were distributed. Instead, NETGEAR stockholders will receive cash in lieu of any fraction of a share of Arlo common stock that they otherwise would have received.
On December 18, 2018, NETGEAR mailed an information statement to its stockholders on the record date, which included details on the distribution. The information statement is posted under the Investor Relations tab on NETGEAR’s website at investor.netgear.com and on Arlo’s website at investor.arlo.com.
Deutsche Bank Securities acted as financial advisor to NETGEAR in connection with the distribution. Wachtell, Lipton, Rosen & Katz acted as legal advisor to NETGEAR in connection with the distribution.