Amphenol has announced a significant move to expand its broadband and network infrastructure offerings by acquiring CommScope’s connectivity and cable solutions business for $10.5 billion in an all-cash transaction. This acquisition represents Amphenol’s largest deal to date and is strategically aimed at enhancing its presence in the building infrastructure connectivity market.
The announcement garnered a strong market reaction, with CommScope’s shares soaring 42% in premarket trading, while Amphenol’s shares experienced a marginal rise of around 2%. The acquisition is expected to strengthen Amphenol’s market share amidst the growing demand for broadband and 5G technology, positioning it at the forefront of the evolving connectivity landscape.
For CommScope, the sale is part of a broader strategy to streamline business operations and improve its financial standing. The connectivity and cable solutions unit that is being sold develops cabling and connectivity products for a variety of networks, including broadband, enterprise, and wireless technologies. Earlier this year, Amphenol also acquired CommScope’s Andrew business, and this latest deal builds on last year’s $2.1 billion acquisition of CommScope’s outdoor wireless network and distributed antenna systems units.
CommScope has been navigating a debt burden of $9.4 billion as of December and is pursuing asset sales as part of a comprehensive plan to reduce this debt. The company’s decision to divest its CCS division reflects a commitment to enhancing financial stability and operational agility in a competitive market.
The deal is anticipated to close in the first half of 2026 and will positively contribute to Amphenol’s diluted earnings per share in the first full year after the acquisition’s completion. The strategic moves from both companies suggest a promising future amidst the increasing demands of modern connectivity solutions.