Attractive and accretive deal for Arris, which has gone through massive M&A expansion since 2012 (if successful in closing this deal, it will have grown revenues to more than USD 8bn vs USD 1.35bn) and which will solidify ARRIS’ position in the set top box market, with the combined company controlling about 25% of the global market (with the next largest competitors Samsung and Cisco each at 7.2% of the market): accretion of deal is driven by both tax and operational synergies: out of targeted USD 0.45-0.55 EPS or 15-25% accretion, slightly more than half of USD 0.25-0.30 accretion is driven by operational synergies and USD 0.20-0.30 driven by tax synergies.

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