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Cable/Video

Arris Sews Up C-COR

Arris Group Inc. (Nasdaq: ARRS) closed its acquisition of C-COR Corp. late Friday afternoon, adding some scale and new technologies to its arsenal that should help it compete with larger rivals such as Cisco Systems Inc. (Nasdaq: CSCO) and Motorola Inc. (NYSE: MOT). (See Arris Closes C-COR Buy .)

The deal was completed a few weeks earlier than originally expected after 98 percent of Arris and C-Cor shareholders voted in favor of the deal, which was first announced in September. (See Arris Takes 'Giant Leap Forward' and Arris Bids $730M for C-COR.)

Arris said it expects to issue former C-COR shareholders about $366 million in cash and 25.1 million shares of Arris common stock.

Arris shares were up 10 cents (0.95%) to $10.29 in early after-hours trading.

In September, the companies said the fusion of C-COR and Arris would have 2,000 employees and annual revenues of more than $1.2 billion.

Arris confirmed that C-COR CEO David Woodle will join the Arris board of directors.

Although there is very little overlap between the Arris and C-COR product portfolios (they have both developed next-gen edge QAMs), the big challenge heading into 2008 will be integrating the companies while concentrating on a competitive sector that's expected to see significant growth potential in areas such as video-on-demand, Docsis 3.0, switched digital video (SDV), and 1 GHz network upgrades.

Arris's board will be relieved to see the transaction completed: Earlier this year its takeover bid for Tandberg Television fell through after it was outbid by Ericsson AB (Nasdaq: ERIC). (See A Quick Close? and Tandberg Board Backs Ericsson Bid .)

However, the news may not be so good for the cable sector's fun seekers. Industry scuttlebutt suggests that, as a result of the acquisition, the informative (and way fun) C-COR Global IP Summit may have enjoyed its last hurrah. The third-annual event took place in late June in Cannes, following earlier parties [ed. note: don't you mean meetings?] in Athens and Barcelona. (See Slideshow: C-COR Global IP Summit .)

— Jeff Baumgartner, Site Editor, Cable Digital News

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