Set-top maker Arris has agreed to acquire its competitor Pace for $2.1 billion in stock and cash. The deal will provide Arris will an entry into the satellite business as well as beef up its customer base. The newly merged company will be incorporated in the U.K. but its headquarters will remain in Suwanee, Ga.
The deal has been approved by both the Arris and Pace boards but must still be approved by shareholders. The acquisition is expected to close late this year.
Under the terms of the deal, Pace shareholders will receive £1.325 ($1.99) in cash and a fixed exchange ratio of 0.1455 Arris shares for each Pace share. The cash portion will be funded through a combination of cash and debt.
Arris Chairman and CEO Bob Stanzione will head up the newly merged company and the current Arris board of directors will remain the same. In addition, the newly merged company will have 8,500 employees around the globe.
Arris appears to be on a buying spree. Last week the company teamed with Charter Communications (NASDAQ: CHTR) to purchase cloud TV company ActiveVideo for around $135 million.
For more:
- see this press release
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