ARRIS stock on Thursday rose over 22 percent—leading the NASDAQ Composite index. The gain was due to an announcement that the company would acquire Pace, a U.K.-based telecommunications company.
The deal will allow ARRIS to change its domicile to the United Kingdom, where it will enjoy a 21 percent tax rate, rather than the typical 35 percent rate here in America. Such deals, known as tax inversions, were very much in vogue in 2014. The Department of the Treasury made changes in late 2014 that were meant to discourage inversions by blocking some of the tax benefits.