CommScope, a leading communications solution provider has agreed to acquire TE Connectivity’s broadband network unit for about US$3 billion to expand its strong presence in the US to other markets, namely Europe, the Middle East and Asia. TE Connectivity is a leading provider in fiber optic connectivity for wireline and wireless networks. The transaction includes TE’s telecommunications, enterprise networks and wireless businesses. The transaction, which was approved by the boards of directors of both companies, is also 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.
The telecommunications, enterprise and wireless businesses of TE Connectivity generated annual revenues of approximately $1.9 billion in its year ended September 26, 2014.
Eddie Edwards, CommScope president and chief executive officer
This is an important and transformative acquisition for CommScope, bringing together complementary geographic and customer coverage, products and technologies for the benefit of our stockholders, customers and employees. This transaction has many clear strategic and financial benefits for all of our stakeholders. It creates enhanced scale with a combined, diversified portfolio that we believe is well-positioned to take advantage of opportunities in the marketplace.
Tom Lynch, TE Connectivity chairman and CEO
CommScope is a proven industry leader, and we believe it is the right company to lead our Telecom, Enterprise and Wireless businesses forward. Our dedicated employees have been instrumental in the success of these businesses, and we are confident in their ability to continue to deliver. We look forward to working closely with the CommScope management team to close the transaction.
