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In a move that will give it 25% of the global video processing market, Arris Group Inc. agreed to buy Norway's Tandberg Television ASA for $1.2 billion.arrs The timing of the acquisition, which comes as phone companies upgrade their networks to accommodate the growing digital TV market, makes Arris a 'triple-play' threat by offering customers video, data and telephony solutions over the same channel. Tandberg is currently the world's largest producer of video-encoding systems used for Internet and high-definition TV; Arris offered Tandberg shareholders a 12% premium over the company's current stock price. Shares rose 13% in Oslo as a result. Among those expected to face a challenge by Arris' latest move: Motorola and Cisco, both of whom have recently made plays to enter the global triple-play market.

• Sources: Press Release, Bloomberg, Reuters, Washington Post
• Related commentary: Arris Snaps Up Tandberg TV, Cramer's Take on ARRS
• Potentially impacted stocks and ETFs: Arris Group (ARRS). Competitors: Cisco (CSCO), Motorola (MOT), Ericsson (ERIC), Alcatel-Lucent (ALU). ETFs: iShares Goldman Sachs Networking (IGN), Internet Architecture HOLDRS (IAH)

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Source: Arris Group Snaps Up Tandberg TV, Becomes 'Triple-Play' Threat