23rd Apr 2015 05:39
LONDON (Alliance News) - Set-top TV box maker Pace PLC reached a deal late Wednesday to be acquired by US broadband media technology company Arris Group Inc for GBP1.4 billion in cash and shares.
Under the terms of the deal, shareholders of the FTSE 250-listed company will receive GBP1.325 in cash and 0.1455 of a Arris share for each Pace share, making a total consideration of GBP4.265 per share, a 28% premium to Pace's closing price on Tuesday. Shares in Pace closed at 322 pence on Wednesday.
The deal will result in the creation of New Arris, which will incorporated in the UK but which will retain its headquarters in Suwanee in the US state of Georgi. Pace shareholders will get approximately 48.2 million shares in the New Arris business and will hold a 24% stake in the new business, with Arris holding the remaining 76%.
Bob Stanzione, the chairman and chief executive of Arris Group, will become the chairman and chief executive of the combined entity.
By Sam Unsted; [email protected]; @SamUAtAlliance
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