SeaChange International is "continuing to evaluate a range of strategic options," CEO Bill Styslinger said in response to a report that Arris Group has been in talks to acquire the video-on-demand and advertising systems vendor.
Arris has been in discussions to acquire SeaChange for the last several months, the Wall Street Journalreported Thursday.
In a statement issued Friday morning, Styslinger said, "As we have previously announced, the board of directors has formed an independent advisory committee to work with management and the board to advise and support them in a wide range of business development and other initiatives."
Styslinger continued, "Together with our financial advisors, Blackstone Advisory Partners LP and Evercore Group LLC, the committee is continuing to evaluate a range of strategic options for the company. Its work is ongoing and the company will inform investors if there are material developments to report."
Arris declined to comment on the report.
The WSJ did not report a potential price tag for SeaChange. In 2007, Arris acquired VOD vendor C-COR in a deal worth $621 million; that deal came after Arris launched a failed bid for Tandberg Television (now part of Ericsson).
According to the Journal, TiVo and NDS Group also considered buying SeaChange but cited an anonymous source who said "they have lost interest now."
Last fall one of SeaChange International's largest shareholders, investment advisory firm Ramius, sent a letter to the company's board of directors expressing "disappointment and concern regarding the poor margin performance" in the core software business and called on the board to re-evaluate the decision to not sell the Servers and Storage business. Ramius owns approximately 8.9% of SeaChange's outstanding shares.
SeaChange expects to announce its fiscal 2012 first quarter financial results on Thursday, June 9.
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