SAN JOSE, Calif. — Arlo Technologies (NYSE: ARLO) enters the New Year officially as a standalone company with the completion of its spin-off from Netgear.
Netgear revealed its spin-off plan during a fourth quarter 2017 earnings conference call, during which CEO and Chairman Patrick Lo said, “Arlo’s market-leading, IP wire-free security camera solution would not have been possible without the world-class radio frequency expertise that can only be found at Netgear.”
The wireless security camera maker announced Dec. 31 that Netgear (NASDAQ: NTGR) completed its previously declared distribution of 62,500,000 shares of common stock owned by Netgear, representing approximately 84.2% of the outstanding shares of Arlo common stock.
Following the completion of the distribution, Netgear no longer owns any shares of Arlo common stock.
The distribution was made Dec. 31 to Netgear stockholders of record as of the close of business on Dec. 17, the recording date. The distribution took place in the form of a pro rata common stock dividend to each Netgear stockholder of record on the record date, according to the announcement.
Based on the shares of Netgear common stock outstanding on 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 the company’s 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.
In connection with, and effective upon the completion of, the distribution of shares of Arlo common stock, Patrick C.S. Lo resigned as a director of the company. The Board of Directors of also reduced the size of the board from seven to six.
On Dec. 18, 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.
