Broadband communications supplier Arris Group is said to be in discussions that could lead to a purchase of multiscreen video specialist SeaChange International.
The combination of the two companies would expand the video server and back office software business acquired by Arris through the September 2007 purchase of C-Cor for $730 million.
Quoting people familiar with the situation, The Wall Street Journal reports that TiVo and NDS were previously in discussions, but have subsequently lost interest.
In recent months SeaChange has sought to reduce costs in its hardware business amid a declining market for servers and storage. SeaChange also has a content business in the On Demand Group that has interests in the UK, Germany and the Middle East, and would be a significant departure for Arris were the talks to be fruitful.
It was already known that SeaChange had been exploring ways to offload its hardware business and it may be that only a portion of the company will actually be sold.
SeaChange has not been adverse to acquisition itself through the 2009 acquisition of the Dutch EventIS and before it Axiom.
Arris reported full year revenues in 2010 of $1,087.5 million, while for SeaChange the equivalent figure was $216 million.