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ARRIS COMPLETES TRANSACTION TO ACQUIRE CADANT®, INC.
1/9/2002 - Duluth, GA
ARRIS (Nasdaq: ARRS), a global telecommunications technology leader, announced today
that on January 8, 2002, the company completed its previously announced acquisition
of all of the assets of Cadant® Inc., a privately held designer and manufacturer
of next- generation Cable Modem Termination Systems (CMTS). Cadant and ARRIS are the
only companies whose market leading CMTS products have been CableLabs® DOCSISTM
1.1 qualified. Under terms of the transaction, the Company paid 5.25 million shares
of ARRIS common stock for the assets and assumed approximately $17 million in liabilities.
ARRIS also agreed to pay up to 2.0 million additional shares based upon future sales
of the CMTS product.
''We are pleased to welcome Cadant into the ARRIS family,'' said Bob Stanzione, ARRIS
President & CEO. ``It is clear that the combined strengths of our CableLabs DOCSIS
1.1 qualified Cornerstone® CMTS 1500 and the Cadant C4TM CMTS uniquely position
us to provide Telephony over Internet Protocol (ToIPTM) and allow us to respond to
customer requirements for ToIP and high speed data transport. These head-end products
coupled with the recently received CableLabs DOCSIS 1.1 certification of our TouchstoneTM
Telephony Modem, allow worldwide availability of end-to-end IP telephony and data
solutions for operators of all sizes.''
The carrier-class Cadant C4 CMTS was declared generally available in November 2001.
Numerous C4 CMTS lab and field trials are currently under way with major North American
and European Multiple Systems Operators (MSOs). Publicly disclosed customers include
Sunflower Broadband and GCI. Sunflower Broadband replaced legacy DOCSIS 1.0 CMTS equipment
with the C4 CMTS as the first step in its upgrade to DOCSIS 1.1. GCI, a MSO with cable
deployments throughout Alaska, chose the C4 CMTS as its multi-service delivery platform
initially targeting tiered data services to residential and business customers.
ARRIS noted that reliable platform based solutions will accelerate the deployment
of internet protocol standards based telephony and data transport solutions for broadband
system operators worldwide. By having the leading DOCSIS 1.1 qualified rack mounted
and high-density chassis based CMTS architectures, combined with the knowledge and
infrastructure gained from the largest number of cable telephony deployments, the
Company is positioned to help its customers migrate from existing technologies to
newer ToIP technologies. In addition, ARRIS remains committed to CableLabs PacketCableTM
standards based IP Telephony.
ABOUT ARRIS
ARRIS provides broadband local access networks with innovative optical transport,
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 Duluth,
Georgia, USA, ARRIS has design, engineering, manufacturing, distribution, service
and sales office locations throughout the world. Information about ARRIS products
and services is found at www.arrisi.com.
Forward-Looking Statements:
The expectations expressed above with respect to how the transaction will impact ARRIS'
product offering and market position are forward-looking statements. These statements
are based on current expectations, estimates, forecasts, and projections about the
markets in which the Company operates. The Company cautions that forward-looking statements
are not guarantees of future performance and expressly disclaim any obligation to
update any forward-looking statement. The forward-looking statements involve risks
and uncertainties that may cause actual results to differ materially from those set
for the in these statements. Among other things,
- because the market in which ARRIS operates is dynamic, actions taken and contemplated
may not achieve the desired impact relative to changing market conditions and the
success of these strategies will be dependent on the effective implementation of
those plans while minimizing organizational disruption;
- the process of integrating an acquired business into ARRIS' current business is
risky and may involve unforeseen operating difficulties including the diversion
or dilution of management's time from ongoing development of the business; possible
decline in employee morale and retention issues; and the need to integrate various
management information systems.
In addition to the factors set forth elsewhere in this release, other factors that
could cause results to differ from current expectations include: the impact of rapidly
changing technologies; the impact of competition on product development and pricing;
the ability of ARRIS to react to changes in general industry and market conditions
including regulatory developments; rights to intellectual property, market trends
and the adoption of industry standards; and consolidations within the telecommunications
industry of both the customer and supplier base. These factors are not intended to
be an all- encompassing list of risks and uncertainties that may affect the Company's
business. Additional information regarding these and other factors can be found in
ARRIS' reports filed with the Securities and Exchange Commission.
All trademarks mentioned in this document are the property of their respective owners.
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