ARRIS Group, Inc. parent company ARRIS International plc (NASDAQ: ARRS) has completed its USD 2.1bn (GBP 1.4bn) acquisition of Pace plc, the company said.
The deal was consummated with a combination of stock and cash.
The newly combined company is incorporated in the UK, with operational and worldwide headquarters remaining in Suwanee, GA, USA.
ARRIS shareholders will own approximately 76 percent of the new company, with former Pace shareholders owning the remaining 24 percent.
Initial analysis indicates that the transaction will not be taxable to US holders of the former ARRIS Group shares. However, final information regarding the aggregate stockholder basis as of the closing of the transaction in the former ARRIS Group shares and applicable earnings and profits will not be available for some time, and the current expectation as to the taxable nature of the transaction may change.
The acquisition is expected to create USD 0.65 — USD 0.75 Non-GAAP EPS accretion in the next 12 months. ARRIS expects to benefit from improved product, company, and operational expenditures, a reduced tax rate, and a strong, flexible balance sheet.
ARRIS combines entertainment and communications technology in hardware, software, and services across the cloud, network, and home to power TV and Internet for millions of people around the globe.