CommScope (www.commscope.com) has agreed to acquire TE Connectivity’s Telecom, Enterprise and Wireless businesses in an all-cash transaction valued at approximately $3 billion. The transaction, which was approved by the boards of directors of both companies, is expected to accelerate CommScope’s strategy to drive profitable growth by entering into attractive adjacent markets and to broaden its position as a leading communications infrastructure provider. This acquisition will also give CommScope greater geographic and business diversity.
The Telecom, Enterprise and Wireless businesses of TE Connectivity, has generated annual revenues of approximately $1.9 billion in the fiscal year that ended September 26, 2014, consisting of $1.1 billion from its Telecom business; $627 million from Enterprise; and $164 million from Wireless. The combined company’s pro forma results for the twelve months ended September 30, 2014 would have been approximately $5.8 billion in net sales and $1.2 billion in pro forma adjusted EBITDA. The transaction is expected to be in excess of 20% accretive to CommScope’s adjusted earnings per share by the end of the first full year after closing and on a pro forma basis, excluding purchase accounting charges, transition costs and other special items.
The Transaction is expected to Position CommScope for Future Growth and Value Creation Through:
- Establishing Leading Positions across Diverse and Growing Product Segments and Geographies.
- Significantly Expanding Platform for Innovative Solutions
- Creating Complementary Market Opportunities.
- Offering Significant Synergy Opportunities and Strong Financial Profile.
- Enhancing Employee Opportunities as Part of Larger Organization.
Visit the CommScope Website to learn more - www.commscope.com
