Sept. 23 (Bloomberg) -- Arris Group Inc., a U.S. provider of broadband communication networks, said it will acquire C-Cor Inc. for $730 million in cash and stock to increase sales of equipment and services to the cable industry.

C-Cor shareholders will receive either $13.75 in cash or 0.9642 shares of Suwanee, Georgia-based Arris, the companies said in a statement. The price is 19 percent more than C-Cor's 30-day trading average and 39 percent more than its closing price of $9.88 on Sept. 21.

Arris and C-Cor both provide equipment and services to cable companies such as Cablevision Systems Corp. and Comcast Corp. The two companies had combined sales of more than $1.2 billion during the past year and will together have more than 250 customers, the statement said.

Arris said in today's statement that C-Cor will ``enhance its video growth opportunities.'' Earlier this year Arris was outbid by Ericsson AB for Tandberg Television ASA of Norway. The purchase would have given Arris more than a quarter of the global market for video processing.

``The combined company will be extremely well positioned to deliver cross-platform solutions aimed at key customer spending initiatives including switched digital video, next generation video on-demand and digital advertising infrastructure,'' Bob Stanzione, Arris's chairman and chief executive officer, said in the statement.

UBS AG was financial adviser for Arris and Troutman Sanders LLP was its legal adviser. Merrill Lynch & Co. was C-Cor's financial adviser and Ballard Spahr Andrews & Ingersoll LLP was its legal counsel.

Arris shares declined 3 cents to $14.26 in Nasdaq Stock Market trading on Sept. 21. The shares have gained 14 percent this year. State College, Pennsylvania-based C-Cor's shares, down 11 percent this year, gained 9 cents on Sept. 21.

To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net

Last Updated: September 23, 2007 22:15 EDT