There’s a rumor swirling about that Arris and SeaChange International are talking about the former buying the latter.
Arris declined to comment.
SeaChange circulated the following comment attributed to CEO William Styslinger: “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. Together with our financial advisors, Blackstone Advisory Partners and Evercore Group, 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.”
The two companies have had discussions about an acquisition for months, according to The Wall Street Journal, though no decisions have been made yet.
SeaChange International has been under pressure from investors for at least a couple of years to get out of the VOD hardware market, where it was once strong but in recent years has had declining fortunes. The company thus far has resisted doing so, declining to abandon its installed base.
The stock prices of SeaChange and Arris have both gone up on the rumors.