Arris / Google Deal Good For SeaChange (SEAC)

Yesterday Arris Group, Inc. (NASDAQ: ARRS) announced it would acquire the Motorola Home business of Motorola Mobility, owned by Google (NASDAQ: GOOG). ARRIS supplies video and broadband service tools and sees Motorola Home as an opportunity to sell new equipment to customers whose home cable-TV sets don’t support Internet-video delivery. Analysts at Brean Capital think SeaChange (Nasdaq: SEAC) is well positioned for combined Arris-Motorola, and is a strategic asset that will eventually end up in someone else's hands . . . hint, hint.

"A combined ARRS/MOT for SEAC makes sense to us because 1) neither ARRS or MOT have a significant position in VOD back office, 2) neither currently have a commercially available strategy for the RDK, 3) SEAC would broaden a combined MOT/ARRS exposure to key customers including UPC, 4) ARRS and SEAC share 100% of market in VOD ad insertion," wrote analyst Todd Mitchell.

Mitchell said ARRS was reportedly the primary interested party when SEAC sought strategic interests inquiries.

Brean Capital has a Buy rating on SeaChange International (NASDAQ: SEAC) with a price target of $12.00.

For an analyst ratings summary and ratings history on SeaChange International click here. For more ratings news on SeaChange International click here.

Shares of SeaChange International closed at $9.69 yesterday.

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