CommScope to sell OWN & DAS units to Amphenol for USD $2.1bn

CommScope has announced that it has entered into a definitive agreement to sell its Outdoor Wireless Networks (OWN) segment and the Distributed Antenna Systems (DAS) business unit to Amphenol. The transaction, valued at approximately USD $2.1 billion in cash, is expected to close within the first half of 2025. This sale is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The OWN segment of CommScope provides wireless infrastructure solutions for mobile networks, including macro and small cell site solutions. The DAS business unit is focused on providing cellular infrastructure solutions inside venues, campuses, and enterprises. These divisions are considered integral to advancing CommScope's technological offerings, but the company believes the sale will allow it to concentrate on its remaining segments and business units.

Chuck Treadway, CEO of CommScope, said, "CommScope has a strong reputation for driving innovation and value for our customers. This transaction allows CommScope to increase focus and further strengthen its CommScope NEXT priorities with its remaining segments and business units. We believe CommScope's OWN and DAS businesses are positioned to continue to perform well under Amphenol's leadership."

CommScope NEXT is CommScope's strategic initiative aimed at driving innovation and enhancing its core business segments within the network infrastructure sector. The initiative focuses on advancing technology leadership, improving operational efficiency, and delivering customer-centric solutions to meet the growing demands for high-performance broadband, wireless, and enterprise networks.

The agreement between CommScope and Amphenol marks a significant shift in the wireless infrastructure landscape, with both companies expected to benefit from the transaction. CommScope aims to refocus its efforts on other core aspects of its business. At the same time, Amphenol stands to enhance its market position with the acquisition of these business units, potentially unlocking new opportunities for growth and expansion.

Analysts see CommScope's decision to sell these assets as part of a broader strategy to streamline operations and bolster the company's financial standing amid an increasingly competitive market. By divesting from these specific segments, CommScope is likely aiming to optimise its resource allocation and drive growth in other areas where it sees more strategic opportunities.

On the other hand, the acquisition will enable Amphenol to expand its existing portfolio substantially in the wireless network domain. The integration of CommScope's OWN and DAS business units is expected to offer Amphenol enhanced capabilities and a broader customer base, potentially leading to increased market share and revenue growth in the forthcoming years.

Moelis & Company serves as CommScope's financial advisor for this transaction, while Alston & Bird provides legal counsel.