CommScope swoops to acquire ARRIS in $7.4BN deal
| 09 November 2018

The long-rumoured sale of broadcast technology and services firm ARRIS has now been confirmed in the form of a mega deal with CommScope.

The infrastructure solutions provider says that the deal, said to be worth around $7.4 billion, will allow it to accelerate its vision to shape the communications networks of the future. Furthermore CommScope claims that the transaction more than doubles expected product addressable market to greater than $60 billion and that it will generate approximately $1 billion in cash flow from operations and be more than 30% accretive to adjusted earnings per share in first full year after closing.

As part of the deal, global alternative asset manager The Carlyle Group also re-established an ownership position in CommScope through a $1 billion minority equity investment as part of CommScope's financing of the transaction.

With ARRIS as part of its portfolio, CommScope expects its new division 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 as well as 5G.

“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 CommScope president and chief executive officer Eddie Edwards.

“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.”