CommScope, a leader in network connectivity, has reached an agreement to sell its Connectivity and Cable Solutions (CCS) segment to Amphenol for about $10.5 billion in cash. This strategic move is expected to reshape CommScope’s business and provide significant returns to shareholders.
The transaction is expected to close in the first half of 2026, pending receipt of regulatory approvals and a vote from CommScope shareholders, as required by Delaware law. After accounting for taxes and transaction expenses, CommScope anticipates net proceeds of approximately $10 billion, which will be used to repay all outstanding debt and redeem the preferred equity held by Carlyle.
Following these measures, CommScope expects to have excess cash, which it plans to distribute to shareholders as a dividend within 60 to 90 days after the sale closes. The final amount and timing of this dividend will depend on the company’s leadership decisions.
The acquisition will enhance Amphenol’s portfolio and market presence, while CommScope will become a more focused and financially stable company. This deal reflects the ongoing transformation in the telecommunications sector, as companies narrow their focus to enhance competitiveness and drive innovation. Shareholders can expect immediate cash returns, and analysts will be keen to observe CommScope’s future strategy for its remaining business segments.
Advisors: Evercore is acting as the financial advisor to CommScope. And Alston & Bird are acting as legal advisors to CommScope.
KEY QUOTE:
“I’m excited to announce this transformational deal that unlocks equity value, returns cash to our shareholders and strengthens our remaining businesses. ANS and RUCKUS will continue to stay focused on what matters most—our shareholders, customers, employees and other stakeholders. In our ANS and RUCKUS businesses, we will continue to develop the next generation of network connectivity. CommScope’s CCS business is positioned to continue to perform well under Amphenol’s leadership.”
Chuck Treadway, CEO, CommScope
