Saltaire technology company Pace to become part of US giant Arris Group in £1.4 billion deal

Terms have been agreed for a recommended cash and shares combination of Pace with Arris Group, which Pace chairman Allan Leighton believes will enable it to achieve growth "above and beyond our standalone potential".

The move will create a business with more than 8,500 staff in 15 countries globally.

Mr Leighton said: "The combination of the complementary Arris and Pace businesses will create a platform for future growth above and beyond our standalone potential. We believe this is a great fit for both companies, our employees, customers and trading partners."

He said Pace had made a good start to the new financial year with revenues between January 1 and April 22 above those of a year earlier and demand across all product areas growing.

"The improved revenue, higher gross margins and lower costs contributed to increased profitability in the period compared to Q1 2014. We continue to focus on the execution of our Strategic Plan and have made further headway in the period," said Mr Leighton.