BigBand Networks (BBND) shares are surging today on the news that communications technology company Arris (ARRS) has agreed to acquire the company for $2.24 per share in cash.
The deal amounts to a diluted equity value of $172 million, or $53 million net of BigBand's cash on hand.
Arris said the acquisition of the digital video networking solutions provider further extends its capabilities in the processing, management and distribution of digital video content, and represents an important acquisition of innovative technologies and significant research and development investments.
Further, BigBand's patent portfolio and expertise in digital video networking will enhance Arris' technological leadership as service providers move to an all-IP converged network architecture, the company said.
BigBand's board has recommends that shareholders accept Arris' tender offer. The transaction is expected to close late this year.
The companies compete with larger, more well-known communications technology players like Cisco (CSCO) and Motorola Solutions (MSI).
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