Comcast, Arris Reach Warrant Agreement

   By Austen Hufford

Arris International PLC said Tuesday that cable giant Comcast Corp. could buy up to 8 million Arris shares after the companies reached a warrant agreement.

Arris supplies Comcast with technologies for its video, data and voice services and wireless gateways for its in-home wifi service and other networking equipment.

The warrant's final size is dependent on the amount of products and services that Comcast purchases from Arris in 2016 and 2017. In order to reach the full 8 million potential shares, a set percentage of the purchases must be for products and services included in Arris' network and cloud segment. The warrant will vest in two tranches and will have an exercise price per share of $22.19.

"We believe the warrants demonstrate Comcast's strong commitment to Arris and its products and represent an opportunity for us to further grow our relationship," Arris Chief Executive Bob Stanzione said.

In January, Arris completed its $2.1 billion acquisition of British communications company Pace PLC. In April, Comcast said it had agreed to buy DreamWorks Animation SKG Inc. for about $3.8 billion in a deal to boost its movie-making business.

Shares of both companies were inactive in premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

July 05, 2016 09:39 ET (13:39 GMT)

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