ARRIS Group, the Suwanee-based supplier of cable equipment including voice and data modems, announced Wednesday that it is acquiring Pace Plc, a British technology company, for $2.1 billion.
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The new company will be incorporated in the United Kingdom, while operational and worldwide headquarters will remain in Suwanee.
Pace supplies set-top boxes, software and other services for the pay-TV and broadband industries. ARRIS said the deal will, among other things, give it a large-scale entry into satellite services and expand the company’s international presence.
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In trading Thursday, ARRIS shares were up sharply from their Wednesday close of $30.54, reaching a new 52-week high at one point in heavy volume.
Chairman and Chief Executive Officer Bob Stanzione said the acquisition helps position his company for more growth.
“We expect this merger will enable ARRIS to increase its speed of innovation,” Stanzione said in a statement.
The new incorporation in the UK could have positive tax implications for AARIS. As for the dea’ls impact on the company’s Suwanee operations, spokeswoman Jeanne Russo told The Atlanta Journal-Constitution in an email:
“Although we cannot begin integration until the transaction is approved and closed, we expect there are synergies to be realized by combining ARRIS and Pace. As we proceed with integration discussions, we will determine the new organization structure for ARRIS and any impacts to the teams.”
This is ARRIS’ second major acquisition in recent years. In 2013, the company acquired Motorola Mobility’s home business from Google for $2.35 billion, expanding its portfolio of products, as well as its customer base of cable and telephone companies around the globe. At the time, the deal boosted ARRIS’ payroll to 6,500 from 2,100.
The Pace acquisition will increase the company’s payroll to 8,500 globally, ARRIS said.
ARRIS also recently formed a joint venture with Charter Communications to acquire ActiveVideo, a developer of CloudTV and provider of cloud interface technology, for about $135 million.
Staff writer Matt Kempner contributed to this report.
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