CommScope To Acquire Arris International In About $7.4 Bln Deal, Incl. Debt
CommScope Holding Co. (COMM), a provider of infrastructure solutions for communications networks, said Thursday that it has agreed to acquire Arris International plc (ARRS) in an all-cash transaction for $31.75 per share, or a total purchase price of about $7.4 billion, including the repayment of debt. Arris International is a provider of entertainment and communications solutions.
In addition, Carlyle Group L.P. (CG), a global alternative asset manager, has re-established an ownership position in CommScope through a $1 billion minority equity investment as part of CommScope’s financing of the transaction.
The transaction is expected to close in the first half of 2019. It is also expected to be more than 30 percent accretive to CommScope’s adjusted earnings per share by the end of the first full year after closing, excluding purchase accounting charges, transition costs and other special items.
Following completion of the combination, Eddie Edwards will continue in his role as president and chief executive officer of CommScope, with Bruce McClelland and other members of the Arris leadership team joining the combined company.
CommScope will remain headquartered in Hickory, North Carolina, and the combined company will maintain a significant presence in Suwanee, Georgia.
CommScope noted that the combined company is expected to drive profitable growth in new markets, 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.
The combination of CommScope and Arris, on a pro forma basis, would create a company with about $11.3 billion in revenue and adjusted EBITDA of approximately $1.8 billion, based on results for the two companies for the 12 months ended September 30, 2018.
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