Arris Group Inc. said Sunday evening it had agreed to acquire competitor C-Cor Inc. for $730 million. The joint press release said the move would result in "the largest pure-play provider of equipment and solutions to the cable industry." The companies provide equipment and services for broadband communication networks to the cable industry and reported combined revenues of more than $1.2 billion during the recent 12-month period. The offer allows C-Cor shareholders to choose either $13.75-a-share in cash, or 0.9642 Arris shares for each C-Cor share owned, a 39% premium to C-Cor's closing price of $9.88 Friday. Arris CFO David Potts believes the acquisition will "in particular [improve] our gross margins." Assuming it clears regulatory hurdles, the deal is expected to close in January 2008.
Sources: Press Release, MarketWatch, Bloomberg, Reuters, Dow Jones Newswires
Commentary: Arris' Growth Prospects Are Questionable • Cable Equipment Supplier C-Cor Drops 17% on Q4 Miss, But Analysts Aren't Worried • Ericsson Outbids Arris in Grab for Tandberg TV
Stocks/ETFs to watch: ARRS, CCBL
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