LONDON In a deal that combines two leading suppliers of networking equipment for cable operators, Arris is to buy C-COR for approximately $730 million in cash and stock.
Overt he past year, Arris (Atlanta, GA.) and and C-COR (State College, PA.), have collectively reported revenues of more than $1.2 billion.
The merger, said Arris Chairman and CEO Bob Stanzione, will "enable us to introduce products and solutions that neither company would be able to develop alone."
The terms of the deal, agreed by the boards of both companies, represents an approximately 19 percent premium to the 30 day trading average of C-COR common stock and a 39 percent premium to the closing price of C-COR common stock on September 21, 2007.
The companies say that subject to the usual regulatory clearances, the transaction is expected to close in January 2008.
Earlier this year , Arris tried to buy , for $1.2 bn, set-top box and TV maker Tandberg, but was outbid by Ericsson.
Stanzione added the companies have already had a long standing business relationship and the combination would "create the leading pure play solutions provider to the global cable industry offering a full suite of IP telephony, high speed data, video infrastructure and video management solutions."
David Woodle, Chairman and CEO of C-COR, said, Arris represents "the best strategic partner" for C-COR.
As well as an R&D center in Atlanta, Chicago, Arris has significant development teams in, Cork, Ireland and Shenzhen, China.