Maker Of Disasterous Foxtel iQ3 Box Sold
One of the biggest makers of set top boxes and media centres in the world Pace was aquired by US telecommunications firm Arris.
The Foxtel box is scoped and manufactured via Pace India a subsidary of the UK Company.
Arris, which provides cable operators with high-speed data, video and telecoms systems, said the FTSE 250-listed group would enable it to enter the satellite-TV market.
Arris has created a new holding company for Pace, New Arris, which will be based in the UK. New Arris’ shares will be listed on the Nasdaq.
Allan Leighton, Pace chairman, said: “We believe that the combination of the complementary Arris and Pace businesses will create a platform for future growth above and beyond our standalone potential.
“We believe this is a great fit for both companies, our employees, customers and trading partners.”
The combined group is expected to boast revenues of around $8bn and will employ more than 8,500 people in over 15 countries.
Pace, whose key customers include US firms Comcast, AT&T and DirecTV, saw pre-tax profits rise 34.3pc to $175.7m last year, while revenues climbed 6.1pc to $2.6bn.
The 23-year-old company expects sales of $2.75bn this year and adjusted earnings before interest, tax and amortisation of around $255m, higher than analysts’ expectations.
Bob Stanzione, chairman and chief executive of Arris, said: Adding Pace’s talent, products and diverse customer base will provide Arris with a large scale entry into the satellite segment, broaden our portfolio and expand our global presence.”