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Network equipment provider ARRIS Group Inc. is reportedly planning to purchase IPTV and digital video equipment maker TANDBERG Television for approximately US $1.2 billion in a stock-cash transaction.

The deal, which is expected to be completed in 2Q2007, will result in one of the largest network equipment providers in the world. ARRIS is a leading provider of VoIP, data broadband network equipment and consumer premises devices, while TANDBERG has a focus on IPTV (News - Alert), video conferencing and video-on-demand equipment, as well as video security solutions.

“The combination of ARRIS and TANDBERG Television is positive for the digital media industry and a truly exceptional opportunity for both companies,” said Bob Stanzione, chairman and CEO of ARRIS, in a press release. “By bringing together these two market leaders we are able to expand on our vision to be the global leader in the provision of digital IP infrastructure and to enable voice, video and data to be delivered over integrated broadband networks from the content provider to the head-end to the home. With this merger, we are creating a new force, with best-in-class technologies and an outstanding team of people with a unique understanding of all service provider networks, the technologies that enable them, and the content that travels through them.”

By adding TANDBERG’s IPTV, video conferencing and VoD equipment (and security solutions) to its portfolio, ARRIS will become a completely comprehensive IP Communications company offering VoIP, Video and Data services gear all under one brand. According to the press release, the new company will have a “significant global presence with over 1,600 employees and 2,000+ customers in more than 100 countries.”

Stanzione said the deal will enable ARRIS to address “the global telecom, satellite, and broadcast video markets that have historically been TANDBERG Television’s largest customers” and to use TANDBERG’s strong global presence to expand ARRIS’ current offerings into new countries and regions.

“We will give the existing TANDBERG Television team the support they need to continue to satisfy and earn the loyalty of their current and potential customers,” Stanzione said in the release. “In addition, we see many opportunities in leveraging the great engineering resources from both companies to meet the evolving technology needs of our customers worldwide.”

“The on-going industry consolidation amongst our key customer base creates a demand for companies that can offer an increasing scale and scope of supply on a global basis,” added Jan Christian Opsahl, chairman of TANDBERG Television. “The combination of ARRIS and TANDBERG Television clearly creates that market leading supplier of voice, video and data solutions.”

ARRIS will be discussing details during a conference call scheduled for 8:30 a.m., EST, Tuesday, Jan. 16.

For more specifics, click here and here and here.