Amphenol Acquires CommScope's Core Networking Business for $10.5 Billion, Boosting AI and Data Center Capabilities

Amphenol to buy CommScope's broadband connectivity, cable unit for $10.5 billion

Aug 4 (Reuters) - Fiber-optic cable maker Amphenol (APH.N), opens new tab said on Monday it will buy CommScope's (COMM.O), opens new tab connectivity and cable solutions business for $10.5 billion in an all-cash deal. Shares of CommScope surged 42% in premarket trading, while Amphenol rose about 2%. The transaction aims to bolster Amphenol's portfolio, particularly by adding fiber optic interconnect products for artificial intelligence and other data center applications. The deal is expected to close in the first half of 2026 and will add to Amphenol's diluted earnings per share in first full year after closing. Reporting by Kritika Lamba in Bengaluru; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab

Amphenol to acquire CommScope's core networking business for $10.5B - SiliconANGLE

Amphenol to acquire CommScope's core networking business for $10.5B Amphenol Corp., a major network equipment supplier, today announced plans to buy most of rival CommScope Holding Co.'s business operations for $10.5 billion. The deal was warmly received by investors. Shares of CommScope surged more than 86% while Amphenol is up 3.6%. Amphenol is buying CommScope's connectivity and cable solutions, or CCS, business, which accounts for more than two thirds of its revenue. The unit makes networking cables for data centers. It sells both copper wiring and high-speed fiber-optic cables, which are ubiquitous in artificial intelligence clusters. CCS also provides certain related equipment, notably optical distribution frames. Those are closet-like systems used to manage a data center's fiber-optic cabling. They ease tasks such as linking different sections of a network with one another. In addition to data centers, CCS supplies hardware for two other markets: the telecommunications and smart building segments. It supplies components for the outdoor equipment that service providers use to deliver wired internet. In smart buildings, CSS hardware powers network-connected devices such as access control systems. Amphenol competes in many of the same markets as CommScope. Alongside data center networking cables, it sells specialized sensors for tasks such as measuring rain intensity. The company also makes antennas for cell towers, cars and other systems along with power management equipment. "CCS's broad portfolio of fiber optic interconnect solutions for the rapidly growing IT datacom market, including for artificial intelligence applications, is highly complementary to Amphenol's already strong product offerings in this market," said Amphenol Chief Executive Officer Adam Norwitt. The acquisition will significantly boost Amphenol's finances. According to the company, CCS is on track to end the year with about $3.6 billion in revenue. Amphenol expects the deal to become accreditive to its adjusted diluted earnings per share within a year of closing. CommScope, for its part, will use most of the proceeds from the deal to pay off its $9.4 billion debt load. The company will subsequently take on "modest leverage" in a move that is expected to leave it with a significant amount of cash on hand. CommScope plans to distribute the cash to shareholders within 60 to 90 after the transaction's completion. The deal comes a few months after the company sold another business unit to Amphenol for $2.1 billion. Andrew, as the unit is called, makes components for wireless networking devices such as Wi-Fi access points and 5G base stations.

CommScope Stock Soars 75% as Amphenol Buys Unit for $10.5B

The news sent CommScope shares soaring, and Amphenol's traded at a record high. Shares of CommScope Holding Co. (COMM) skyrocketed 75% Monday when electronics component maker Amphenol (APH) purchased its Connectivity and Cable Solutions (CCS) operation for $10.5 billion in cash. Amphenol shares traded at an all-time high. Wallingford, Conn.-based Amphenol said the acquisition will boost its "interconnect product capabilities in the fast-growing IT datacom market, particularly adding fiber optic interconnect products for artificial intelligence and other data center applications." It noted that the unit will help diversify its "portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets." CEO R. Adam Norwitt pointed out that CCS's fiber optic interconnect solutions for the IT datacom sector, including for artificial intelligence applications, "is highly complementary to Amphenol's already strong product offerings in this market." Amphenol anticipates the addition of CCS will create sales of about $3.6 billion, and EBITDA margins of 26%, and be accretive to earnings per share in the first full year after the completion of the deal. It expects that to happen in the first half of next year. CommScope Holding Co. shares traded at their highest level in three years. Shares of Amphenol gained 3% Monday and are up 55% in 2025.