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CommScope buys ARRIS for $7.4 billion to enlarge communication networks business

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VoicenData Bureau
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CommScope, the company that provides infrastructure solutions for communications networks, has agreed to acquire NASDAQ-listed ARRIS International plc that is in the business of entertainment and communications solutions. The purchase is an all-cash transaction for $31.75 per share with a total purchase price of approximately $7.4 billion, including the repayment of debt.

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In addition, The Carlyle Group, a global alternative asset manager, has reestablished an ownership position in CommScope through a $1 billion minority equity investment as part of CommScope’s financing of the transaction.

The combination of CommScope and ARRIS, on a pro forma basis, would create a company with approximately $11.3 billion in revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $1.8 billion, based on results for the two companies for the 12 months ended September 30, 2018.

The combined company is expected to drive profitable growth in new markets, shape the future of wired and wireless communications, and position the new company to benefit from key industry trends, including network convergence, fiber, and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures.

Following completion of the combination, Eddie Edwards will continue in his role as president and chief executive officer of CommScope, with Bruce McClelland and other members of the ARRIS leadership team joining the combined company.

CommScope will remain headquartered in Hickory, NC, and the combined company will maintain a significant presence in Suwanee, GA. Upon completion of the transaction, CommScope will continue to be led by an experienced board of directors and management team that leverage the strengths of both companies.

wireless broadband commscope communications arris
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