Arris Group is to pay $730 million (E517m) in a mix of cash and stock for C-COR Incorporated. Arris says with over 250 customers around the world, the companies collectively reported revenues of over $1.2 billion over the past year and the merged company will be the largest pure-play provider of equipment and solutions to the cable industry.
C-COR's takeover price of $13.75 a share represents a 19 per cent premium to the 30 day trading average of C-COR stock and a 39 per cent premium to the closing price of C-COR common stock on September 21, 2007. The transaction is expected to close in January 2008.
Bob Stanzione, ARRIS Chairman and CEO, said, “ARRIS and C-COR have had a long standing business relationship. The complementary nature of our portfolios has led us to interact often in supporting our common customers. The combination of our two businesses will create the leading pure play solutions provider to the global cable industry offering a full suite of IP telephony, high speed data, video infrastructure and video management solutions. The combined company will be extremely well positioned to deliver cross-platform solutions aimed at key customer spending initiatives including switched digital video, next generation video on-demand and digital advertising infrastructure. The combination also enables us to build on our leadership positions in cable IP telephony, cable optical and access infrastructure and cable modem termination systems. Further, this combination will allow us to be at the forefront of innovation within our industry and will enable us to introduce products and solutions that neither company would be able to develop alone.”
David Woodle, Chairman and CEO of C-COR, said, “Arris is the best strategic partner for C-COR, allowing us to better serve our worldwide customers with an extensive footprint and as a result we are extremely excited about the potential of this combined company going forward and the value creation it represents. Moreover, with the significant stock component offered in the transaction, C-COR’s shareholders have a meaningful opportunity to participate in realisation of that value.
“Arris will be hoping this transaction closes without further drama â€“ at the beginning of 2008 it announced an agreed takeover of Tandberg only to be dropped at the last moment when Ericsson topped their bid.