Merging the world's two largest set-top makers, Arris' $2.1 billion acquisition of Pace offers insulation from a volatile U.S. pay-TV market, as well as the unpredictable revenue streams of the disparate CPE product cycles, analysts say.
Set-top maker Arris has agreed to acquire its competitor Pace for $2.1 billion in stock and cash. The deal will provide Arris will an entry into the satellite business as well as beef up its customer base. The newly merged company will be incorporated in the U.K. but its headquarters will remain in Suwanee, Ga.
Set-top vendor Pace said Thursday that it generated $190 million in adjusted EBITA last year, which was a 20 percent gain compared to the cash flow it generated in 2012.
Mediacom Communications said Monday that it will soon deploy a media gateway from Pace that runs TiVo's user interface.
Pace surpassed longtime set-top market leader Cisco in market share during the second quarter, according to a report released Wednesday by Infonetics.
Alaskan triple-play provider GCI said Tuesday that it is expanding the rollout of DVRs running TiVo software to Kenai and Soldotna, using Pace's XG1 home video gateway.
A variety of set-top box vendors believe that their products still have a place in the consumer home entertainment space, although, most concede, that place is changing, according to a survey conducted by Euromedia.
Alaskan cable operator GCI is beginning to deploy home video gateways from Pace which run TiVo's DVR software and interactive program guide, TiVo and Pace said Monday.
It's probably safe to say that Pace Plc has recovered from the problems that caused turmoil within the company's product lines and a management shakeup a couple years ago.
In a bit of irony, the dreaded and sometimes hated ubiquitous set-top box is not going away anytime soon for pay TV subscribers because, among other leading reasons, those consumers are becoming more enamored with non-set-top connected devices.