Shares of Claremont-based CommScope nearly doubled Monday on news that the debt-laden company had agreed to sell its Connectivity and Cable Solutions segment to Connecticut-based Amphenol Corporation for $10.5 billion.
Bloomberg reported in May that CommScope had contacted potential buyers for the unit. It also engaged an adviser to explore interest in buying the entire company, Bloomberg said, citing people familiar with the matter.
The deal is expected to close in the first half of 2026, at which time Amphenol will pay CommScope in cash, according to an SEC filing. CommScope shares closed at $14.51, up $6.72 after closing Friday at $7.79. Nearly 75 million shares traded on Monday.
CommScope expects net proceeds after taxes and transaction expenses to be approximately $10 billion. After repaying all debt, redeeming all preferred equity, and adding modest leverage on the remaining business, CommScope expects to have significant excess cash. CommScope plans to distribute the cash in a dividend to shareholders within 60 to 90 days following the closing.
The exact amount and timing of the dividend will be determined after the closing,
In February, CommScope completed the previously announced sale of its Outdoor Wireless Networks segment and the Distributed Antenna Systems business units, also to Amphenol. Proceeds of $2.1 billion reduced debt.
Amphenol shares closed Monday at $108.61, up 4.1%.
CommScope has faced a tough competitive environment in recent years. Its $7.4 billion acquisition of Arris in 2019 sent the company’s debt soaring, while the in-home customer products added in the deal haven’t met growth expectations.
Shares of CommScope traded for more than $30 before the acquisition, but have sunk gradually and have been in the single digits since 2023. CEO Chuck Treadway was hired in 2020, succeeding longtime company executive Eddie Edwards.
“I’m excited to announce this transformational deal that unlocks equity value, returns cash to our shareholders and strengthens our remaining businesses,” Treadway said in a releasse.
CommScope will keep its converged network management-as-a-service platform known as Ruckus that enables IT teams to deliver user experiences and its Access Network Solutions (ANS) segment.
“In our ANS and RUCKUS businesses, we will continue to develop the next generation of network connectivity. CommScope’s CCS business is positioned to continue to perform well under Amphenol’s leadership,” says Treadway.
As of June 30, the company’s long-term debt totaled $7.24 billion, down from $9.24 billion at the end of 2024, according to a securities filing.
The company reported net sales of $1.38 billion in the second quarter, up 32% from the year before. Its Connectivity and Cable Solutions segment accounted for $875 million in sales, up 20% from a year earlier