SUWANEE, GA – Communications technology firm Arris Group Inc. announced plans Sunday to acquire cable and telecommunications equipment maker C-COR Inc. for about $730 million in cash and stock.
Arris, which supplies high-speed data and telephone systems to broadband local access networks, said the deal would give it a global, technologically diverse engineering team with a stronger platform to pursue expansion.
Under terms of the deal, each share of C-COR will be converted into the right to receive either $13.75 cash or 0.9642 Arris shares. Arris said the price represents a 39% premium to the closing price of C-COR stock on Sept. 21, when it closed at $9.88.
The companies collectively reported revenues of over $1.2 billion over the past 12 months, Arris said in a statement. It called the merged company “will be the largest pure-play provider of equipment and solutions to the cable industry”.
As cable operators, telcos and satellite TV providers compete for subscribers, Arris said, the combination of voice, data and video, and eventually mobile, will result in increased demand for bandwidth. Then with additional new services such as IP telephony, HD television and on-demand television, the pressure on bandwidth will increase further, it said. “These trends support the combination of Arris and C-COR and will drive the future success and growth of the new company.”
For example, C-COR On Demand is a leader in On Demand media systems (VOD) and Digital Advertising Systems.
The deal is subject to shareholder approval.
