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  • Date of publication: 31 August 2020
  • 2339
  • businessbuysale.com
  • CommScope acquires Arris for $ 7.4 billion

    Synopsis

    CommScope, an American manufacturer of communications equipment, has agreed to purchase its competitor Arris International.

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Description

CommScope, an American manufacturer of communications equipment, has agreed to purchase its competitor Arris International. 

 

As noted in a press release , CommScope will pay $ 31.75 in cash for each share of Arris, which is about 27% higher than the average share price of the company for 30 days until October 23, when information about a possible deal first appeared in the media.

Given the debts, the total amount of the purchase will be approximately $ 7.4 billion. Of these, $ 1 billion will be paid by the Carlyle hedge fund, which in return will receive 16% of the share capital in the combined company that does not give control.

This deal will create a company with an annual turnover of $ 11.3 billion and strengthen CommScope's position in the market of telecommunications solutions, including the 5G mobile network and the Internet of Things. The parties hope to close the deal in the first half of 2019.

Against the background of the announcement of the deal, CommScope shares on the NASDAQ lost in price more than 21% and at the time of this writing, the news is trading at $ 19.2. Arris quotes, on the contrary, went up: now one share of the company is worth $ 30.6, which is more than 10% higher than the close of trading on Wednesday.

 

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