US-based Arris Group is to acquire UK set-top box manufacturer Pace plc for a stock and cash consideration of $2.1 billion. The transaction will result in the formation of New Arris which will be incorporated in the UK, while its operational and worldwide headquarters will be the US. The combined group will employ 8,500 staff worldwide.
The proposed deal has already been approved by the companies’ respective boards of directors and is expected to close in late 2015, subject to customary closing conditions, including Arris and Pace shareholder approval and regulatory approvals. Arris’s current chairman and CEO, Bob Stanzione will maintain these roles at the new company.
According to IHS, the merger will create the world’s largest supplier of set-top box (STB), broadband gateway and cable TV technology. Combined 2014 revenues of $7.9 billion make it twice the size of its nearest competitor, Cisco’s Service Provider Video business unit.