As expected, Arris rang in the New Year by wrapping up its $2.1 billion acquisition of U.K.-based set-top and video tech supplier Pace Plc.
As it has touted since announcing the deal last year, Arris said the combination will enable the companies to scale across areas spanning set-tops, access networks and cloud video technologies, while also giving Arris a stronger play in the satellite TV market.
Per the deal, Arris shareholders will hold 76% of the new company, with former Pace shareholders owning the remaining 24%. Arris said the merger is expected to create 65 cents to 75 cents non-GAAP earnings per share accretion in the next 12 months and will provide more detail on its next earnings call, slated for February 17.
The newly combined company is incorporated in the U.K., with operational and worldwide headquarters remaining in Suwanee, Ga. Arris International, the parent company, will trade on Nasdaq under the “ARRS” ticker.
Bob Stanzione, Arris chairman and CEO, will lead the combined company under the same title. The Arris board of directors will remain unchanged, Arris said.
"ARRIS is investing in our industry's next stage of growth. This acquisition enables us to scale our leadership and innovation to transform global entertainment and communications for millions of people," Stanzione said, in a statement. "Our combined organization unites two of the strongest leadership and engineering teams in the industry—giving us the scale, expertise, and technology to make ARRIS, more than ever before, the partner of choice for the world's leading service providers. Together with our customers, we're creating a world of connected, personalized entertainment and communications that blend seamlessly into our everyday lives."
