Amphenol Corporation (NYSE: APH), based in Wallingford, CT, announced a definitive agreement to acquire CommScope’s (NASDAQ: COMM) mobile networks businesses for $2.1 billion in cash. The deal includes the purchase of CommScope’s Outdoor Wireless Networks (OWN) segment as well as the Distributed Antenna Systems (DAS) business that is part of CommScope’s Networking, Intelligent Cellular and Security Solutions segment. OWN provides wireless infrastructure for mobile networks, including macro and small cell site solutions. The DAS business provides solutions for cellular infrastructure inside venues, campuses and enterprises.
These combined businesses are currently expected to have full-year 2024 sales of approximately $1.2 billion and EBITDA margins of around 25 percent. Assuming a continuation of current economic conditions, the acquisition is expected to be accretive to Amphenol’s diluted earnings per share in the first full year after closing, excluding acquisition-related costs.
“We are excited by the prospect of adding CommScope’s mobile networks businesses and their approximately 4,000 talented employees to the Amphenol family,” comments R. Adam Norwitt, Amphenol President and CEO. “CommScope provides mobile networks solutions, with advanced technologies in the areas of base station antennas and related interconnect solutions, as well as distributed antenna systems. In particular, we are encouraged that the businesses we are acquiring make up the former Andrew Corporation portfolio of products, a company with a rich history of innovation and technology leadership in the wireless industry.”
Norwitt adds, “We look forward to supporting customers who are developing next-generation wireless networks around the world with these advanced solutions as well as our own existing complementary products.”
“CommScope has a strong reputation for driving innovation and value for our customers,” said Chuck Treadway, CommScope CEO. “We believe CommScope’s OWN and DAS businesses are positioned to continue to perform well under Amphenol’s leadership.”
Amphenol expects to finance the acquisition through a combination of cash on hand and debt. Subject to the receipt of customary regulatory approvals and other closing conditions, the deal is expected to close in the first half of 2025.
By John Celentano, Inside Towers Business Editor
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