Pace bought by US-based Arris for £1.4bn

Pace stand Image copyright PACE
Image caption Pace has manufactured more than 100 million set-top boxes

Pace, the British maker of TV set-top boxes, has been bought by US-based Arris Group.

The cash and stock deal values Pace at £1.4bn.

The combined company will have its tax base in the UK, allowing it to pay a lower corporate tax rate. The firm's operational headquarters will remain in the US.

Founded in 1982, Pace has manufactured more than 100 million set-top boxes and its customers include Sky and AT&T.

Under the deal, Arris shareholders will own 76% of the combined company and Pace shareholders will own the remaining 24%.

"We believe that the combination of the complementary Arris and Pace businesses will create a platform for future growth above and beyond our standalone potential," Allan Leighton, chairman of Pace said in a statement.

Pace shareholders will receive £1.325 in cash and 0.1455 Arris shares for each share held.

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