Wireless network manager CommScope has agreed to buy TE Connectivity’s Telecom, Enterprise and Wireless businesses for $3bn in cash.
With this acquisition, CommScope aims to enter into adjacent wire line telecom networks/fiber-to-the-X markets and strengthen its position as one of the leading communications infrastructure provider.
TE Connectivity’s Telecom, Enterprise and Wireless businesses deals with fibre optic connectivity for wireline and wireless networks, and generated $1.9bn in its fiscal year ending September 26, 2014.
With the completion of the acquisition, CommScope’s overall sales concentration is expected to be more balanced with 46% of wireless sales, 26% of enterprise sales and 28% of broadband connectivity sales.
CommScope is also expected to benefit from TE Connectivity’s strong presence in Europe, Asia Pacific, Middle East, and Africa to boost its own presence around the countries.
CommScope will also gain access to TE Connectivity’s 7,000 patents and patent applications worldwide, which the company expects to use to drive its own innovation.
It is also expected to introduce new technology and solutions to provide better services to its customers and partners.
CommScope is also expected to realise more than $150m in annual synergies after the acquisition is completed.
CommScope president Eddie Edwards said: "This is an important and transformative acquisition for CommScope, bringing together complementary geographic and customer coverage, products and technologies for the benefit of our stockholders, customers and employees."
"This transaction has many clear strategic and financial benefits for all of our stakeholders. It creates enhanced scale with a combined, diversified portfolio that we believe is well-positioned to take advantage of opportunities in the marketplace.
