ATLANTA - Telecommunications tech vendor CommScope is conducting acquisition talks with cable tech company Arris, Reuters reports.
Both companies have presence at the just-about-to-end SCTE Cable-Tec Expo Show, positioned not too far from Arris’ Suwanee, Ga. headquarters. Neither is commenting at this point.
As Reuters noted, Arris shares spiked 13% on Wednesday, with rumor of the deal talks hitting Wall Street.
"We see some industrial logic to the deal, but we are not prepared to believe it,” wrote Raymond James analyst Simon Leopold, who published a note on the reported deal talks. "We see very little overlap for cost synergies beyond G&A. The companies are quite different, with Arris focused on electronics and CommScope on apparatus."