Acquisition of Connectivity and Cable Solutions Division of CommScope Worth $10.5 Billion, Finalized by Amphenol
In a significant move, CommScope has agreed to sell its Connectivity and Cable Solutions (CCS) segment to Amphenol for approximately $10.5 billion in cash. The transaction, expected to close in the first half of 2026, subject to regulatory approvals and a vote from CommScope shareholders, is set to have a profound impact on both companies.
For CommScope, the sale will provide approximately $10 billion in net proceeds after taxes and transaction costs. The company plans to use these funds primarily to repay debt, redeem preferred equity held by Carlyle, and reduce financial leverage. This move will strengthen CommScope's balance sheet and enable it to return cash to shareholders via a significant dividend within 60 to 90 days of closing.
Post-sale, CommScope will focus on its remaining businesses, Ruckus and Access Network Solutions (ANS), which generated a combined EBITDA of $300 million on $1.7 billion in 2025 sales and are positioned for growth. The divestiture is viewed positively by analysts as a strategic move to manage debt and focus on core growth areas, not as a sign of industry weakness.
For Amphenol, acquiring the CCS segment, with projected 2025 sales of $3.6 billion and a 26% EBITDA margin, significantly expands its portfolio in fiber optics, high-density interconnects, and cooling systems critical for AI-driven data center infrastructure. The purchase is seen as a strategic move to capitalise on the growth of AI and data centers, solidifying Amphenol’s role as a leading provider of connectivity solutions for hyperscale cloud and AI computing environments.
The acquisition is expected to drive an 18% EBITDA compound annual growth rate (CAGR) through 2027 and deepen Amphenol’s competitive moat by offering one-stop solutions for key customers. Overall, the acquisition positions Amphenol as a foundational enabler of next-generation AI hardware and data center technology, accelerating its growth trajectory and market leadership.
In summary, CommScope benefits by deleveraging and sharpening its business focus with strong shareholder returns, while Amphenol gains a complementary and rapidly growing business that elevates its competitiveness in the AI and data center markets. Alston & Bird and Evercore are acting as legal and financial advisors to CommScope, respectively. Analysts will be keen to observe CommScope's future strategy for its remaining business segments.
Chuck Treadway, CEO of CommScope, announced the transformational deal, expressing excitement about the deal's potential to unlock equity value for CommScope and position the company as a more focused and financially stable entity in the telecommunications sector. The deal is aimed at strengthening CommScope's remaining businesses and is expected to close in the first half of 2026, pending regulatory and shareholder approvals. CommScope's CCS business is positioned to continue to perform well under Amphenol's leadership. The final amount and timing of this dividend will depend on the company's leadership decisions.
The sale of CommScope's Connectivity and Cable Solutions (CCS) segment to Amphenol, set to bring in approximately $10 billion for CommScope, will primarily be used to repay debt, redeem preferred equity, and reduce financial leverage, enabling a significant dividend for shareholders. By acquiring CCS, Amphenol aims to expand its portfolio in fiber optics, high-density interconnects, and cooling systems critical for AI-driven data center infrastructure, capitalizing on the growth of AI and data centers. This deal is expected to drive an 18% EBITDA compound annual growth rate through 2027, deepening Amphenol’s competitive moat by offering one-stop solutions for key customers, and positioning Amphenol as a foundational enabler of next-generation AI hardware and data center technology.
