Arris eyes SeaChange
May 27, 2011
By Colin Mann
Broadband technology specialist Arris Group is in discussions to buy multi-screen video provider SeaChange International, reports The Wall Street Journal, citing people familiar with the matter.
It is unclear what price SeaChange will fetch, or if a deal will be reached between the two companies, which have been in off-and-on talks for the past several months, one of the people said.
Both TiVo and NDS reportedly considered buying SeaChange, but have now lost interest, sources suggest.
SeaChange settled a dispute in 2010 with activist investor Ramius LLC, which owns about seven per cent of the shares. Ramius gained two board posts at SeaChange. The investor later said the company had failed to meet financial targets, and urged the board to hire a financial adviser to explore strategic alternatives.
William Styslinger, Chairman and CEO of SeaChange International, commented: “As we have previously announced, the Board of Directors has formed an independent advisory committee to work with management and the Board to advise and support them in a wide range of business development and other initiatives. Together with our financial advisors, Blackstone Advisory Partners, LP and Evercore Group L.L.C., the committee is continuing to evaluate a range of strategic options for the Company. Its work is ongoing and the Company will inform investors if there are material developments to report.”