CommScope to buy TE Connectivity's businesses for $3 billion
The transaction, which was approved by the boards of directors of both companies, is expected to accelerate CommScope's strategy to drive profitable growth by entering into attractive adjacent markets and to broaden its position as a leading communications infrastructure provider.
In addition, CommScope will have greater geographic and business diversity following the completion of the transaction.
The Telecom, Enterprise and Wireless businesses of TE Connectivity, a world leader in fiber optic connectivity for wireline and wireless networks, generated annual revenues of approximately $1.9 billion in its fiscal year ended September 26, 2014, consisting of $1.1 billion from its Telecom business, where it is a world leader; $627 million from Enterprise; and $164 million from Wireless.
The combined company's pro forma results for the twelve months ended September 30, 2014 would have been approximately $5.8 billion in net sales and $1.2 billion in pro forma adjusted EBITDA.
The transaction is expected to be in excess of 20% accretive to CommScope's adjusted earnings per share by the end of the first full year after closing and on a pro forma basis, excluding purchase accounting charges, transition costs and other special items. ■