Pace, Arris Agree to $2.1 Billion Inversion Deal, May Face Challenge

Arris Group Inc. agreed 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 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 percent, the company said in a statement.

The biggest threat to the takeover will be U.S. antitrust concerns, Nick James, an analyst with Numis Securities said on Thursday. Together, the companies provide ...