Arris Sews Up C-COR
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