ARRIS Group Inc. (Nasdaq: ARRS) has acquired digital TV management solutions developer BigBand Networks Inc. (Nasdaq:BBND) at $2.24 per share in cash, for $172 million, or $53 million net of BigBand's cash reserves of $127 million. Although the price reflects a 76% premium on BigBand's closing price yesterday, the net price is less than a tenth of the company's value at its IPO.
BigBand's share price rose 74% in premarket trading today to $2.22, giving a market cap of $156 million.
BigBand raised a gross $139 million at $13 per share in its IPO in 2007, for a company value of $743 million. Shareholders made $62 million in capital gains to shareholders in the offer to sales that accompanied the IPO.
BigBand's discordant note is reflected in its destruction of shareholder value, albeit it did well for its two founders, president and CEO Amir Bassan-Eskenazi, and Ran Oz who resigned as CTO a few months ago. Bassan-Eskenazi's stake has sold $6.3 million worth of shares over the years, and currently owns shares worth $6 million, while Oz sold shares for $28.2 million over the years.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2011
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