Global communications technology giant ARRIS has agreed to acquire struggling video networking company BigBand Networks for $2.24 per share, in cash, the company announced this morning. The purchase price equates to a diluted equity value of approximately $172 million, or $53 million net of estimated BigBand cash on hand.

The acquisition will be conducted by means of a tender offer for all of the outstanding shares of BigBand, which is expected to commence within ten business days and will be subject to customary closing conditions.

BigBand Networks provides broadband service providers with digital video networking solutions designed to make it easier to distribute, manage and monetize video. The company says it has done business with more than 200 customers in North America, Asia and Europe, including eight of the ten largest cable and telco service providers in the United States and Canada.

ARRIS says the proposed deal will extend its capabilities in the processing, management and distribution of digital video content. Another important aspect of the decision to acquire BigBand was the latter’s patent portfolio, ARRIS says in a statement.

Upon closing, ARRIS says it anticipates optimizing BigBand’s financial performance through the elimination of public company costs and the alignment of sales, marketing, and R&D initiatives.

The board of directors of BigBand has recommended that the shareholders of BigBand accept the tender offer. Redpoint Ventures and ValueAct Capital Partners, holders of 32 percent of the outstanding shares of BigBand, have agreed to tender their shares in the offer.

Completion of the acquisition is expected to occur later this year.