CommScope to acquire Arris

CommScope, a global provider of infrastructure solutions for communications networks, has agreed to acquire Arris International in an all-cash transaction for a total purchase price of approximately USD 7.4 billion, including the repayment of debt.
The combination of CommScope and Arris would create a company with approximately USD 11.3 billion in revenue and adjusted EBITDA of approximately USD 1.8 billion, based on results for the two companies for the 12 months ended September 30, 2018.
The companies said in a press release that the Carlyle Group has reestablished an ownership position in CommScope through a USD 1 billion minority equity investment as part of CommScope’s financing of the transaction.
The combined company is expected to drive profitable growth in new markets, shape the future of wired and wireless communications, and position the new company to benefit from key industry trends, including network convergence, fiber and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures.
Arris, an innovator in broadband, video and wireless technology, combines hardware, software and services to enable advanced video experiences and constant connectivity across a variety of environments – for service providers, commercial verticals, small enterprises and the people they serve.
“CommScope and Arris will bring together a unique set of complementary assets and capabilities that enable end-to-end wired and wireless communications infrastructure solutions that neither company could otherwise achieve on its own. With ARRIS, we will access new and growing markets, and have greater technology, solutions and employee talent that will provide additional value and benefit to our customers and partners”, commented Eddie Edwards, president and chief executive officer, CommScope.