Arris tunes into $172m BigBand purchase
10.11 Europe/London, October 12, 2011 By Julian Clover
Arris has announced a definitive agreement for the purchase of BigBand Network at an equity value of $172 million or an outlay of approximately $53 million.
In a conference call, Bob Stanzione, Arris chairman & CEO, said the company had the support of both the BigBand board and its two largest shareholders, which together represent about 32% of the company’s equity.
“We are both enthusiastic and optimistic about the BigBand acquisition because it builds on our stated business strategy of growing our current businesses into a more complete portfolio including a strong video product suite and investing in the evolution towards network convergence onto an all IP platform,” said Stanzione.
BigBand is recognised as a leader in switched digital video, a means of expanding the available bandwidth on an HFC network. It has also worked on digital advertising insertion. The company currently has 200 customers around the world, both in cablenets and telcos, the latter providing particular opportunities for Arris in video processing. Stanzione described the product lines as being “complementary”.
The acquisition will be conducted by means of a tender offer for all of the outstanding shares of BigBand, which is expected to commence within ten business days.
Arris has been in acquisition mode for the last four years, purchasing C-Cor in 2007, and later launching a bid for the former Tandberg Television before its purchase by Ericsson.
Earlier this year Arris was linked to discussions involving the purchase of SeaChange International.