Arris took to the company blog Tuesday to announce the exec team that will lead the company following the completion of its $2.1 billion merger with U.K.-based Pace plc.
Arris confirmed that Bob Stanzione will continue as chairman and CEO of the combined company, along with executive vice president and CFO Dave Potts.
Larry Margolis has been tapped to lead the integeration of Arris and Pace as EVP of corporate and strategy and administration. Larry Robinson and Bruce McClelland, meanwhile, will remain as presidents of their respective business units (McClelland runs the company's networking and cloud unit, and Robinson heads up customer premises equipment).
Here’s a rundown of other execs and their roles at the newly merged tech giant:
-Ron Coppock will head up a new, dedicated international sales organization and continue to lead marketing, as president of International Sales and Global Marketing.
-Tim O’Loughlin, an exec late of Pace, has been named president, North American sales.
-Jim Brennan will continue as SVP of Supply Chain and Quality; Patrick Macken as SVP, General Counsel and Secretary; and Vicki Brewster as SVP of Human Resources.
-Former Pace exec Phil Baldockwill serve as Arris’s new SVP, chief information officer.
Arris said it expects “many members of the Pace senior management team to take on leadership positions” at the new company, calling it a “testament to Pace CEO Mike Pulli’s work in creating one of the industry’s leading talent organizations and one that matches ARRIS’s culture of success.”
Arris confirmed that Pull is leaving to pursue other opportunities.
“The people of ARRIS represent the future of our company,” Stanzione said in a statement. “Today, we have the industry’s leading talent under one roof. And in the coming months, we’ll begin to leverage the full potential of our combined expertise—broadening our global footprint, tapping into new markets, catalyzing innovation, and transforming entertainment and communications for millions of people around the world.”
Following the closure of the deal, Raymond James analyst Simon Leopold maintained his “Strong Buy” rating on Arris and a $38 price target (Arris shares closed at $30.40 Monday), noting that the company assumed an additional $700 million in debt via the transaction, and issued an additional 48.2 million shares.
“Even with the lower growth outlook provided by Pace, and conservative assumptions for Pace's top-line growth in 2016, our updated model continues to reflect material accretion, and we envision combined EPS reaching $3.13 in 2016, up from $2.45 previously for stand-alone ARRIS,” Leopold wrote in research note issued Tuesday. “We also model a combined adjusted 2016 EBITDA of $1.04 billion, up from $675 million previously for stand-alone ARRIS.”
Citing data from Infonetics, Leopold noted that Arris will lead the worldwide set-top market with a 27% share, and that STBs will now make up about 60% of the combined company’s total sales.