Item 1.01. Entry into a Material Definitive Agreement.
On September 23, 2007, C-COR Incorporated (C-COR) entered into an Agreement and Plan of Merger
(the Agreement) with ARRIS Group, Inc., a Delaware corporation (ARRIS), and Air Merger
Subsidiary, Inc., a Delaware corporation and wholly owned subsidiary of ARRIS (Merger Sub),
whereby C-COR will merge with and into Merger Sub, with Merger Sub as the surviving corporation
(the Merger). Each issued and outstanding shares of C-COR common stock will be converted into
the right to receive either $13.75 in cash or 0.9642 shares of ARRIS common stock, subject to
adjustment based on the average closing price of ARRIS common stock prior to the closing of the
Merger. The actual aggregate consideration received by C-COR shareholders will be 51% cash and 49%
ARRIS common stock and C-COR shareholder elections will be pro-rated if necessary. In addition,
all outstanding options to acquire C-COR common stock, the vesting of which will accelerate as a
result of the Merger, will be converted into the right to acquire shares of ARRIS common stock.
The stock component of the merger consideration is subject to adjustment in the event that the
average closing price of ARRIS common stock for the ten trading-day period ending three trading
days prior to the closing date of the Merger (the Average Closing Price) is less than $12.83 or
more than $15.69, provided, however, that no further adjustments will be made in the event the
Average Closing Price is less than $11.41 or more than $17.11. The adjustments to the merger
consideration can be made, at ARRIS option and subject to certain restrictions, in cash, shares of
ARRIS common stock, or a combination of both.
ARRIS and C-COR have each made customary representations, warranties and covenants in the
Agreement, including, among others, covenants to conduct their businesses in the ordinary course
between the execution of the Agreement and the consummation of the Merger. ARRIS also has agreed
to name one nominee of C-COR to the ARRIS board of directors as soon as practicable after the
Merger is complete. The Merger is subject to the approval of the shareholders of both ARRIS and
C-COR, as well as the receipt of regulatory approvals, including clearance under the
Hart-Scott-Rodino Act.
In addition to the customary termination provisions, the Agreement provides that either ARRIS or
C-COR may terminate the Agreement in the event that the Average Closing Price is less than $11.41.
Upon the termination of the Agreement under specified circumstances, ARRIS or C-COR, as the case
may be, would be required to pay the other party a termination fee of $22,500,000.
The foregoing description of the Agreement does not purport to be complete and is qualified in its
entirety by reference to the Agreement, which is filed as Exhibit 2.1 hereto, and is
incorporated into this Current Report by reference. A copy of the joint press release announcing
the execution of the Agreement is attached hereto as Exhibit 99.1.
Item 8.01. Other Events.
In addition to the issuance of the press release described above, on September 24, 2007, ARRIS and
C-COR held a conference call related to the Merger. The Investor Presentation utilized
during such conference call is attached as Exhibit 99.2 to this Report and is incorporated
herein by reference. In connection with the announcement of the Merger, the following exhibits
also have been filed with this Current Report: (i) a communication to the employees of C-COR and
ARRIS dated September 23, 2007, filed as Exhibit 99.3, (ii) Frequently Asked Employee
Questions dated September 23, 2007, filed as Exhibit 99.4, and (iii) an Employee
Presentation dated September 24, 2007, filed as Exhibit 99.5.
Important Information for Investors and Stockholders
In connection with the proposed combination of ARRIS and C-COR, ARRIS will file with the SEC a
registration statement on Form S-4, which will include a proxy statement of C-COR and a proxy
statement and prospectus of ARRIS. Shareholders are urged to read the joint proxy
statement/prospectus regarding the proposed transaction when it becomes available, because it will
contain important information. Shareholders will be able to obtain a free copy of the joint proxy
statement/prospectus, as well as other filings containing information about ARRIS and C-COR,
without charge, at the SECs internet site (http://www.sec.gov). Copies of the joint proxy
statement/prospectus and the filings with the SEC that will be incorporated by reference in the
joint proxy statement/prospectus can also be obtained, without charge, by directing a request to
ARRIS Group Inc, 3871 Lakefield Drive, Suwanee, Georgia 30024, Attention: Investor Relations (678)
473-2647, or to C-COR, 60 Decibel Road, State College, Pennsylvania 16801, Attention: Director of
Investor Relations (800) 233-2267 ext. 4402.
C-COR and certain executive officers and other members of its management may be deemed participants
in the solicitation of proxies from its stockholders in connection with the proposed merger.
Information concerning the interests of C-CORs participants in the solicitation, which may be
different than those of C-COR stockholders generally, will be set forth in the proxy
statement/prospectus relating to the merger when it becomes available.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 2.1 | Agreement and Plan of Merger, dated September 23, 2007 by and among ARRIS Group, Inc, C-COR Corporation, and Air Merger Subsidiary Inc. | ||
| 99.1 | Joint Press Release, dated September 24, 2007. | ||
| 99.2 | Investor Presentation made on September 24, 2007 | ||
| 99.3 | Letter to Employees of C-COR and ARRIS, dated September 23, 2007 | ||
| 99.4 | Frequently Asked Employee Questions, dated September 23, 2007 | ||
| 99.5 | Employee Presentation made on September 24, 2007 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| C-COR Incorporated (Registrant) |
||||
| By: | /s/ Joseph E. Zavacky | |||
| Date: September 24, 2007 | Name: | Joseph E. Zavacky | ||
| Title: | Controller and Assistant Secretary | |||
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