CommScope announced plans to acquire ARRIS International, a global entertainment and communications solutions provider, for $7.4 billion in what would be its largest-ever acquisition.
A press release said that once the deal is completed, “the newly combined company is expected to generate profitable growth in new markets and lead the way in wired and wireless communications.” As well as position the company to benefit from industry trends like network convergence, fibre, mobility, 5G, internet of things and the ever changing network and technology architectures.
“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 CEO 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.”
The release said that the deal will enable the combined companies to be well positioned to capitalize on industry trends, unlock high-growth segments and increase their product-addressable market, increase product offerings and R&D capabilities, and strengthen their financial profile. “CommScope is an ideal partner for ARRIS,” said ARRIS CEO Bruce McClelland. “With CommScope, we expect to further advance ARRIS’ strategy to drive innovation across our iconic brands and pioneer the standards and pathways for tomorrow’s personalized, connected always-on consumer experience.”
In addition to the ARRIS acquisition, the Carlyle Group, a global asset manager, has re-established its ownership position in CommScope through a $1 billion minority equity investment as part of CommScope’s financing of the ARRIS deal. Of note, CommScope was spun off from General Instrument in 1997, the company to which Arris can trace back the heritage of the set-top box side of the business.