CommScope has agreed to sell its Connectivity and Cable Solutions segment to Amphenol for approximately $10.5 billion, aiming to strengthen its focus on core businesses and return excess cash to shareholders.

Target Information

CommScope (NASDAQ: COMM) is a prominent global player in the network connectivity sector, specializing in innovative wired and wireless solutions. The company has announced a definitive agreement to sell its Connectivity and Cable Solutions (CCS) segment to Amphenol Corporation (NYSE: APH) for approximately USD 10.5 billion in cash. This transaction is slated to close by the first half of 2026, contingent upon standard closing conditions, including necessary regulatory approvals and a required shareholder vote in accordance with Delaware law.

The anticipated net proceeds from this sale, after accounting for taxes and transaction expenses, are estimated to be around USD 10 billion. Following the repayment of all debts, the redemption of preferred equity held by Carlyle Group, and some modest leverage on the remaining business, CommScope expects to have a substantial amount of excess cash, which the company plans to return to shareholders in the form of dividends shortly after the closing of the deal.

Industry Overview

CommScope operates within the technology sector, particularly focusing on network connectivity and communication solutions. The global market for network connectivity is witnessing considerable growth driven by the increasing demand for high-speed interne