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Arris Group In Talks to Buy SeaChange

Broadband communications supplier Arris Group is said to be in discussions that could lead to a purchase of multiscreen video specialist SeaChange International.

The combination of the two companies would expand the video server and back office software business acquired by Arris through the September 2007 purchase of C-Cor for $730 million.

Quoting people familiar with the situation, The Wall Street Journal reports that TiVo and NDS were previously in discussions, but have subsequently lost interest.

In a statement released to Broadband TV News, William Styslinger, Chairman and CEO of SeaChange International, Inc, said the company continued to work with its financial advisors, but stopped short of confirming the talks were taking place. “As we have previously announced, the Board of Directors has formed an independent advisory committee to work with management and the Board to advise and support them in a wide range of business development and other initiatives. Together with our financial advisors, Blackstone Advisory Partners and Evercore Group, the committee is continuing to evaluate a range of strategic options for the Company. Its work is ongoing and the Company will inform investors if there are material developments to report.”

In recent months SeaChange has sought to reduce costs in its hardware business amid a declining market for servers and storage. SeaChange also has a content business in the On Demand Group that has interests in the UK, Germany and the Middle East, and would be a significant departure for Arris were the talks to be fruitful.

It was already known that SeaChange had been exploring ways to offload its hardware business and it may be that only a portion of the company will actually be sold.

SeaChange has not been adverse to acquisition itself through the 2009 acquisition of the Dutch EventIS and before it Mobix and VividLogic.

Arris reported full year revenues in 2010 of $1,087.5 million, while for SeaChange the equivalent figure was $216 million.

Source: broadbandtvnews
based on information from Wall Street Journal

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