Looking to bring brawn to broadband networks for service providers looking to deliver content from the headend to the handset, ARRIS and Noreigan IPTV products vendor TANDBERG Television on Monday announced plans to merge in a deal valued at $1.2 billion.
Atlanta-based ARRIS offered to pay $15 in cash and stock for each TANDBERG share. The merger, which could be approved as early as the second quarter of this year based on shareholder and regulatory approvals, is driven by consolidation in and globalization of the two companies’ service provider customer base.
The companies said by combining their resources and experience they will be able to enable voice, video and data over any network and to any device.
ARRIS provides data broadband network equipment and consumer premises devices, while TANDBERG Television is established in the digital video sector with more than 25 percent share of the global video processing market and handles advanced compression, on-demand and interactive television.
They did not disclose the name of the new company, its senior management team nor whether the merger would result in staff reductions.
The new company will have a significant global presence with more than 1,600 employees and 2,000 customers in more than 100 countries. ARRIS’ North American cable business and strategic customers in key international markets will be significantly expanded through TANDBERG Television’s international market leadership position in IPTV, HDTV and on-demand television.
The deal will allow Arris to expand on its ability to “provide digital IP infrastructure and to enable voice, video and data to be delivered over integrated broadband networks from the content provider to the head-end to the home,” said Bob Stanzione, chairman and CEO for the firm.
ARRIS www.arrisi.com
TANDBERG Television www.tandbergtv.com
