Arris (ARRS) Today’s Premarket Leader Stock

Shares of Arris Group, Inc. (ARRS) are up 18% in early trading after the company announced this morning an agreement to buy British set-top box maker Pace Plc for about $2.1 billion and incorporate in the U.K. in a deal designed to save on taxes. The data communications solutions provider said the acquisition will combine two of the biggest equipment makers for telecommunications and cable companies in the U.S. and give Arris access to the satellite market. It will also reduce Arris’s non-GAAP tax rate to as low as 26%.

The proposed transaction has been approved by the respective Boards of Directors of ARRIS and Pace and is expected to close in late 2015.

Following the news, ARRS was reiterated a ‘Buy’ by Brean Capital analysts on Thursday. The broker also increased its price target on the stock to $44 from $34, implying 22% expected return.

ARRS shares recently gained $5.48 to $36.02. In the past 52 weeks, shares of Suwanee, Georgia-based company have traded between a low of $23.71 and a high of $35.83. Shares are up 15.25% year-over-year and 1.16% year-to-date.

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