Arris investors have approved the $7.4 billion acquisition of the technology company by CommScope.
In a shareholders meeting in London, investors holding 99% of the company’s stock signed on for the deal, which was announced in October.
"This approval marks another important milestone in accelerating our strategy. Together, we believe Arris and CommScope have an unprecedented opportunity to help shape future communication networks and to look to deliver additional value to our shareholders, customers, partners and employees," said Arris CEO Bruce McClelland, in a statement.
The approval followed a lawsuit filed last month in a New York federal court against Arris by shareholder Louise Agnes-Sampson. She claimed Arris didn’t disclose key financial projections needed by investors to effectively vote in the London meeting.
Shortly after the deal was announced, BTIG Research analyst Walter Piecyk said the combined companies could realize $300-$450 million in annual cost synergies.
“Wireless operators are densifying and entering the broadband market and cable operators are likely to build wireless networks,” Piecyk wrote in a note to investors. “CommScope and Arris have complementary products that address these diverse sets of service providers. As an example, Arris has developed CBRS access points that will appeal to wireless and cable operators and CommScope is developing a SAS (Spectrum Access System) that enables the functionality of those access points.”
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