Arris

(ARRS) - Get Report

made a $730 million stock and cash deal for rival

C-Cor

( CCBL), sparking the networking industry consolidation game back to life.

Arris says it will pay $13.75 a share in cash or stock for each share of C-Cor. The offer represents a 39% premium over C-Cor's closing price of $9.88 Friday.

Both Arris and State College, Pa.-based C-Cor make networking gear for cable and satellite TV broadcasters.

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The deal is among the first between communications technology shops since the recent credit crunch cooled off the mergers and acquisition activity in the industry. The Arris and C-Cor deal could help revive some stalled matchmaking.

Though

merger talks continue with

Nortel

( NT), telecom-equipment maker

Tellabs

( TLAB), the sides have yet to strike an agreement, say people familiar with the discussions.

C-Cor shares rose $3.37, or 34%, to $13.25 and Arris shares were down 93 cents to $13.33.