Arris Intends to Acquire BigBand - Analyst Blog
12 10월 2011 - 5:00PM
Zacks
Arris Group Inc.
(ARRS) has entered into a definitive agreement to acquire
BigBand Networks Inc. (BBND) for a total
consideration of approximately $172 million in cash. However, after
adjusting $119 million of net cash in the hands of BigBand, Arris
will need to pay a net $53 million to acquire the former. The
acquisition will be conducted through a tender offer for all of
BigBand’s outstanding shares, which is expected to begin within
next 10 days and will be subject to customary closing conditions.
Arris expects this deal to be completed by the end of 2011.
The proposed acquisition of BigBand
is a major step by Arris to convert itself as an all IP-converged
network architecture solution provider. BibgBand is a specialist in
switched digital video (SDV). If the deal gets regulatory approval,
Arris will become the market leader in the SDV segment. Arris will
also occupy a rich patent portfolio of BigBand, which is spread
across dense edge QAM technologies, targeted advertisement
insertion, and systems designed to help cable operators migrate to
an IP video architecture.
Further, BigBand will help Arris to
diversify its clientele. Arris is heavily dependent on
Comcast Corp. (CMCSA) and Time Warner
Cable Inc. (TWC), who together accounts for nearly 40% of
Arris’ total revenue. With BigBand in its kitty, Arris can now get
revenue from other big cable MSOs, such as Cablevision
Systems Corp. (CVC) and Cox Communications Inc. Most
importantly, the two telecom giants, namely,
AT&T (T) and Verizon Communications
Inc. (VZ) are customers of BigBand. This will be a
significant diversification for Arris in the telecom sector.
Arris is confident of generating
significant cost synergies from this acquisition. These two
entities have several overlapping products, which may allow Arris
to streamline BigBand business. Management expects BigBand to be
accretive to Arris’ non-GAAP earnings by mid-2012. The merged
entity may become a formidable rival to other big players, such as
Cisco Systems Inc. (CSCO) and Motorola
Mobility Holdings Inc. (MMI) in the digital video
infrastructure industry.
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
BIGBAND NETWORK (BBND): Free Stock Analysis Report
COMCAST CORP A (CMCSA): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
CABLEVISION SYS (CVC): Free Stock Analysis Report
MOTOROLA MOBLTY (MMI): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
Zacks Investment Research
Bigband Networks (MM) (NASDAQ:BBND)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Bigband Networks (MM) (NASDAQ:BBND)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024