Comcast partner Arris reported in talks with CommScope (Update 11/7: Deal done)
Tom Paine
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Arris Group, a major supplier of software and systems such as modems and set top boxes to cable, and an important business partner to Comcast, is reported to be in talks with CommScope (Hickory NC) about a possible business combination.
Arris, based outside of Atlanta, has a sizable portion of its business in Montgomery County from its acquisition of Motorola's cable business from Google in 2013.
My first thought upon hearing this was that Arris was trying buy CommScope. But no; upon closer examination CommScope was the pursing party.
CommScope's market value at present is $4.7 billion; Arris' is $4.5 billion after a little runup over the past two days. A combination would most likely be a merger of equals.
While Arris makes smart electronic equipment, CommScope makes parts and components, so they are at different ends of the value chain.
Some analysts having rated the chances of anything coming out of the talks as being low, so we'll see what happens.
When you drive through the town of Hickory, you will quickly see that CommScope is the big business there. There is an enormous Apple data center a few miles outside of town, but it doesn't require many employees.
Update 11/7: CommScope agrees to buy Arris for $5.7 billion, excluding debt.
