Antec, Nortel join broadband cable forces to form new company.
Nortel Networks Corp. and ANTEC will realign their cable TV organization and create a new company that will acquire Nortel's ownership interest in Arris Interactive. The new company will be renamed Arris Inc., and will focus on the broadband local access market.
Nortel will transfer to the new company its 81.25 percent interest in Arris Interactive in return for 33 million shares of common stock in the new company and approximately $325 million in cash, giving Nortel approximately 46.5 percent ownership interest. ANTEC, which will become a subsidiary of the new company, currently owns the remaining 18.75 percent of Arris.
The new, combined business will focus on bringing the Internet and next-generation services to the cable market. The deal is expected to close in the first quarter of 2001. Arris Interactive was formed by Nortel Networks and ANTEC in 1995.