Amphenol, a leading provider of electronic solutions, announced the acquisition of CommScope's mobile network business unit for US22.1 billion in cash.This transaction marks the deep integration of the two industry giants.
It is reported that the acquisition covers CommScope's outdoor wireless network solution (OWN) and the distributed antenna system (DAS) business unit that is important in the fields of network, smart cellular and security innovation.The combined business entity is expected to achieve approximately US11.2 billion in sales in 2024 and maintain an EBITDA margin of approximately 25%, demonstrating strong financial growth potential.
In order to support this major merger and acquisition, Amphenol plans to use a combination of cash and debt financing to ensure sufficient funds.In terms of the transaction process, the two parties are actively seeking regulatory approval and meeting other transaction prerequisites. It is expected that the entire acquisition process will be successfully concluded in the first half of 2025.
The head of Amphenol, president and CEO R. Mr. Adam Norwitt has high hopes for this cooperation: “We warmly welcome the addition of CommScope's mobile network business, especially its approximately 4,000 talented employees. Their addition will undoubtedly strengthen our team.
CommScope's deep accumulation in mobile network solutions, especially base station antenna and interconnection technology, as well as DAS, forms a perfect complement to our own technical advantages.It is particularly worth mentioning that this acquisition includes the core product line of the former Andrew company, a brand with a long history that has set a benchmark in wireless technology innovation.We firmly believe that by integrating these cutting-edge solutions with our existing product lineup, we can provide global customers with more comprehensive support when building next-generation wireless networks.In addition, this strategic initiative has further consolidated Amphenol's leading position in diversified markets in the electronics field and promoted the balanced growth of our end market influence.”
Mr. Chuck Treadway, CEO of CommScope, said: “CommScope has always been committed to promoting technological innovation and creating unique value for its customers.This transaction not only points to a more focused development direction for CommScope's future, but also allows us to concentrate resources and accelerate the implementation of CommScope's NEXT strategy through retained departments and business lines.We are convinced that under Amphenol's excellent management, the OWN and DAS businesses will continue to maintain a strong momentum of development.”
As a leader in the field of electrical and electronic connection technology, Amphenol is known all over the world for its excellent connectors, interconnection systems, antennas, sensors, coaxial and high-speed special cables and other products.CommScope, as a leader in telecommunications infrastructure in the United States, has successfully completed the divestiture of its home network business at the beginning of the year, and injected it into the French technology company Vantiva in a US现金100 million cash transaction to further optimize its financial structure.With the significant increase in free cash flow from US446.1 million last year to US1178 million, CommScope will focus more on the needs of data center customers after divesting non-core assets, and deepen its core competitiveness in connection and cable solutions, access network services, and network security services.