Subsequent Event (Notes) |
6 Months Ended |
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Jul. 01, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On July 6, 2018, an IPO Registration Statement relating to the IPO of common stock, par value $0.001 per share, of Arlo Technologies, Inc. ("Arlo"), a wholly owned subsidiary of NETGEAR, was filed with the SEC. The IPO Registration Statement was declared effective on August 2, 2018. On August 2, 2018, Arlo and NETGEAR announced the pricing of the IPO of 10,215,000 shares of Arlo’s common stock at a price to the public of $16.00 per share. Arlo’s shares began trading on the New York Stock Exchange under the ticker symbol “ARLO” on August 3, 2018, and the IPO is expected to close on August 7, 2018, subject to customary closing conditions. In addition, Arlo has granted the underwriters a 30-date option to purchase up to an additional 1,532,250 shares of Arlo’s common stock at the IPO price, less underwriting discounts and commissions. At the closing, NETGEAR is expected to own 62,500,000 shares of common stock of Arlo, representing approximately 86.0% of the shares of Arlo’s common stock (or approximately 84.2% of the shares of Arlo’s common stock if the underwriters exercise in full their option to purchase additional shares of Arlo’s common stock). The estimated net proceeds to Arlo from the offering, after deducting the underwriting discount and estimated offering expenses, are expected to be approximately $144.6 million (or approximately $167.4 million if the underwriters’ option to purchase additional shares is exercised in full). The Company currently intends that, following the IPO and no earlier than the expiration or earlier termination of the 145-day lock-up period applicable to NETGEAR, it will complete the Separation by distributing the shares of Arlo common stock then held by NETGEAR to NETGEAR’s stockholders in a manner generally intended to qualify as tax-free to NETGEAR’s stockholders for U.S. federal income tax purposes (the “Distribution”). The separation of the Arlo business, including the Distribution, is subject to market, tax and legal considerations, final approval by the Company’s Board of Directors and other customary requirements. However, the Company may abandon or change the structure of the Distribution if it determines, in its sole discretion, that the Distribution is not in the best interest of the Company or its stockholders. Refer to Item 1A, Risk Factors of Part II of this Quarterly Report on Form 10-Q for various risks and uncertainties associated with the planned separation. |