Arris-Pace approval process moves along as DoJ makes second request for info

Offering shareholders a status update on its proposed $2.1 billion takeover of rival Pace, Arris revealed that the Justice Department has made a "second request" for information regarding the deal.

The second request is part of the regulatory process established under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Arris didn't provide details on what the request entails.

Arris still expects the deal to close toward the end of 2015.

Arris announced its proposal to merge the two biggest makers of pay-TV set-tops in April. Arris Chairman and CEO Bob Stanzione will head up the newly merged company and the current Arris board of directors will remain the same. The combined company would count 8,500 employees around the globe. 

Analysts say the acquisition of Pace offers Arris insulation from a volatile U.S. pay-TV market, as well as some protection from the unpredictable revenue streams of CPE product cycles, analysts say.

"The North American market is going to be challenging this year, as capex budgets are reduced or are at best flat," said Jeff Heynen, principal analyst for broadband access and pay-TV for research company Infonetics. "Arris needed to add in more international exposure as well as exposure beyond the cable space to help reduce the risk of reduced spending among its core North American customer base on the STB side of the business."

IHS just released data showing that global pay-TV set-top revenue declined in 2014, the first such drop in 12 years. 

For more:
- read this Arris press release

Related articles:
Pay-TV set-top revenues shrank last year for first time since 2002, IHS says
Arris' Stanzione: Pace, ActiveVideo buys 'give us substantial software base with which to grow'
Pace acquisition gives Arris offset to volatile U.S. pay-TV market, analyst says

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