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CommScope Buys ARRIS For US$7.4Bn

08/11/2018

USA: CommScope, a global leader in infrastructure solutions for communications networks, has agreed to acquire ARRIS International plc, a global leader in entertainment and communications solutions, in an all-cash transaction for US$31.75 per share, or a total purchase price of approximately US$7.4 billion, including the repayment of debt.
 
In addition, The Carlyle Group, a global alternative asset manager, has re-established an ownership position in CommScope through a US$1 billion minority equity investment as part of CommScope’s financing of the transaction.
 
“After a comprehensive evaluation of our business and the evolving industry we operate in, we are confident that combining with ARRIS is the best path forward for CommScope to grow and provide the greatest returns for shareholders,” said Eddie Edwards, President and Chief Executive Officer, CommScope. “CommScope and ARRIS will bring together a unique set of complementary assets and capabilities that enable end-to-end wired and wireless communications infrastructure solutions that neither company could otherwise achieve on its own. With ARRIS, we will access new and growing markets, and have greater technology, solutions and employee talent that will provide additional value and benefit to our customers and partners.”
 
The combination of CommScope and ARRIS, on a pro forma basis, would create a company with approximately US$11.3 billion in revenue and adjusted EBITDA of approximately US$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, fibre and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures.
 
ARRIS, an innovator in broadband, video and wireless technology, combines hardware, software and services to enable advanced video experiences and constant connectivity across a variety of environments – for service providers, commercial verticals, small enterprises and the people they serve.
 
www.arris.com    www.commscope.com
 
 
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