CommScope (NASDAQ: COMM) has completed the divestiture of its Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) business to Amphenol, marking a strategic shift in its focus on core networking solutions. The deal, initially announced on July 18, 2024, aligns with CommScope’s broader efforts to streamline operations and strengthen its financial position.
Amphenol expects the OWN and DAS businesses to generate full-year 2025 sales of approximately $1.3 billion. Post-closing, the acquisition is expected to be approximately $0.06 accretive to Amphenol’s 2025 earnings per share, which excludes acquisition-related expenses. The OWN and DAS businesses will be included in the Communications Solutions Segment.
“The acquisition of the OWN and DAS businesses brings to Amphenol a strong portfolio of innovative and advanced technologies for communications networks,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “We are excited to welcome nearly 4,000 talented employees to the Amphenol family and look forward to further supporting our customers who are developing next-generation wireless networks around the world.”
CommScope said proceeds from the transaction will be used to reduce debt and improve liquidity, including full repayment of outstanding amounts under CommScope’s asset-backed revolving credit facility, partial repayment of its 4.750% Senior Secured Notes due 2029, and full repayment of its 6.000% Senior Secured Notes due 2026. Additionally, the committed amount under the company’s revolving credit facility will be reduced to $750 million, subject to borrowing base limitations. The transaction is expected to lower CommScope’s Senior Secured Term Loan margin by 25 basis points, contributing to improved financial flexibility.
• CommScope finalizes the sale of its Outdoor Wireless Networks and DAS businesses to Amphenol.
• Proceeds will be used to pay transaction costs and reduce outstanding debt.
• Repayment of asset-backed revolving credit facility and secured notes strengthens financial position.
• Credit facility commitment reduced to $750 million, improving liquidity.
• The company will discuss the financial impact of the transaction during its next earnings call.
CommScope will provide further details on the transaction’s impact on its fiscal year 2025 outlook in its next quarterly earnings report.
