Arris, an American supplier of internet telephony and broadband equipment, has made a $1.2 billion cash and stock offer to acquire Tandberg Television, the Norwegian company which specialises in digital video compression systems for internet protocol television, high-definition and video-on-demand services.

“The on-going industry consolidation amongst our key customer base creates a demand for companies that can offer an increasing scale and scope of supply on a global basis,” said Jan Christian Opsahl, chairman of Tandberg Television. “The combination of Arris and Tandberg Television clearly creates that market leading supplier of voice, video and data solutions.”

Based in Atlanta, Georgia, Arris produces cable television, video and high-speed data equipment. Arris will pay Tandberg $1.2 billion in cash and shares. The combined company would have a significant global presence with over 1,600 employees and a total turnover of over a billion dollars a year.

“By bringing together these two market leaders we are able to expand on our vision to be the global leader in the provision of digital IP infrastructure and to enable voice, video and data to be delivered over integrated broadband networks from the content provider to the head-end to the home,” said Bob Stanzione, the chairman and chief executive of Arris.

Eric Cooney, the chief executive of Tandberg Television, said: “Our customers are increasingly relying on next generation technologies to help them create and distribute converged and differentiated voice, data and video services. There is a clear benefit in being able to source these solutions from one trusted partner.”

Tandberg Television expanded into the United States in 2005 with the acquisition of N2 Broadband of Atlanta and Gold Pocket Interactive and followed in early 2006 by buying SkyStream Networks.

Although listed on the Norwegian stock exchange, Tandberg Television has a main office in Southampton in the United Kingdom. The company was formed in 1979 from part of the original Tandberg radio company which was founded in 1933.