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Pace sells to Arris for $2.1b

Overview

Travers Smith LLP has advised long-standing client Pace, the UK provider of broadband and pay TV technology, on its combination with Arris, a US-based broadband media technology company. The US $2.1billion (£1.4 billion) transaction will be effected through a scheme of arrangement. The new holding company of the enlarged group will be listed on the NASDAQ stock exchange. Pace shareholders will receive cash and stock in the new holding company, which is incorporated in England and Wales. The transaction is subject to a number of conditions and is expected to close in late 2015.

Pace has a strong track record of pioneering innovation. Through a combination of organic development and acquisitions, it has grown to be a leading technology solutions provider to the pay TV and broadband industries. Operating in markets across the world, it employs around 2,300 people in locations including the USA, France, India, and China and provides services to customer base of over 200 operators around the globe. The sale to Arris will significantly enhance Pace’s international presence and expand its product portfolio across software and services. The combination will create a leading broadband media technology company with estimated revenue of US $8 billion and 8,500 employees worldwide.

Travers Smith’s team advising Pace on the transaction was led by Head of Corporate Spencer Summerfield, who was supported by senior associate Jon Reddington. Additional specialist advice was provided by competition partner Nigel Seay and associate Stephen Whitfield and employee incentives partner Mahesh Varia.  Paul Weiss advised Pace on US matters.  Legal advisers to Arris included Troutman Sanders in the US and Herbert Smith Freehills in the UK.

Spencer Summerfield commented:

“We are delighted to have assisted our long-standing client Pace on the transaction, which provides a significant platform for their future growth and creates a major new player in the global broadband media technology market.”

Pace has been a client of Travers Smith for a number of years. The firm advised Pace on its listing on the Official List of the London Stock Exchange in 1996 and has acted for the company since then including on:

  • the acquisition of Aurora, a developer and manufacturer for broadband networks, in 2013
  • the acquisition of broadband and associated software and services company 2Wire in 2010
  • the reverse takeover of the set-top box and connectivity solutions businesses Royal Philips Electronics in 2007