Arris Group and C-COR announced today that they entered into a definitive agreement whereby Arris will acquire C-COR for a purchase price of approximately $730 million in a mix of cash and Arris stock. With over 250 customers around the world, the companies collectively reported revenues of over $1.2 billion over the past 12 months and the companies claim that the merged company will be the largest pure-play provider of equipment and solutions to the cable industry..
Under the terms of the definitive agreement, approved by the Boards of Directors of both companies, but not yet by the shareholders, each share of common stock of C-COR will be converted into the right to receive, at the election of each of the individual holders of C-COR shares, either (i) a cash payment of $13.75 or (ii) 0.9642 shares of ARRIS, subject to pro ration if the elections exceed approximately 51% in cash or 49% in stock. The stock component of the consideration is subject to a collar if the average price of Arris stock for a ten trading day period ending three days prior to closing is greater than $15.69 or less than $1283.
The announcement comes a few months after the unsuccessful takeover bid of Tandberg by Arris, when Ericsson outbid the company and acquired Tandberg.