BigBand Networks (BBND) shares are surging today on the news that communications technology company Arris (NASDAQ: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 (NASDAQ:CSCO) and Motorola Solutions (NYSE:MSI).
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.