ARRIS Will Not Extend or Increase Offer for Tandberg Television
SUWANEE, Ga., March 8 -- ARRIS Group, Inc. (NASDAQ:ARRS) today announced that it will not extend or increase its offer for the shares of Tandberg Television. Following the ARRIS offer, Ericsson made a higher competing offer that the Board of Directors of Tandberg Television subsequently endorsed. At the same time, Tandberg Television terminated the Transaction Agreement with ARRIS.
ARRIS has received a termination fee of $18 million. ARRIS also expects to realize net gains of approximately $11 - $12 million on the sale of foreign exchange contracts that ARRIS had purchased to hedge a portion of the purchase price. ARRIS estimates that it incurred approximately $9 - $10 million of expenses associated with the transaction.
Bob Stanzione, Chairman and CEO of ARRIS stated, "Although the Tandberg Television acquisition was a desirable transaction, our offer was fully priced and we believe a transaction at higher price would not be in the best interests of our shareholders." Stanzione further commented, "ARRIS has used a disciplined approach in its acquisition strategy and will continue to explore possible acquisitions and partnerships to expand and diversify our products and technologies thereby enhancing shareholder value. We continue to be exceptionally well positioned for future growth in the high speed data and telephony markets and we will continue to execute on our plans to enhance our position in those exciting growth markets."
About ARRIS
ARRIS provides broadband local access networks with innovative high-speed data and telephony systems for the delivery of voice, video and data to the home and business. ARRIS complete solutions enhance the reliability and value of converged services from the network to the subscriber. Headquartered in Suwanee, Georgia, USA, ARRIS has design, engineering, distribution, service and sales office locations throughout the world. Information about ARRIS' products and services can be found at www.arrisi.com/.
CONTACT:
Investor Relations,
Jim Bauer of ARRIS,
+1-678-473-2647,
or jim.bauer@arrisi.com
Web site: http://www.arrisi.com/
