CommScope sells mobile network businesses for $2.1bn

• CommScope has agreed to sell its outdoor wireless networks unit and DAS operation
• The assets will be acquired by electronic and fibre optic connector Amphenol in a $2.1bn deal
• The move is part of CommScope’s plan to reduce its debt load

CommScope has agreed to sell its outdoor wireless networks unit and distributed antenna systems (DAS) business to electronic and fibre optic connector specialist Amphenol for $2.1bn, in a bid to optimise its portfolio and alleviate its debt burden.

In a brief statement, CommScope stated that it will receive the proceeds from the sale upon closure of the deal, which is expected to happen in the first half of 2025.

The company’s Outdoor Wireless Networks (OWN) segment offers wireless infrastructure for mobile networks, including macro and small cell site solutions. Its DAS business, which is part of its Networking, Intelligent Cellular & Security Solutions (NICS) segment, offers cellular infrastructure inside venues, campuses and enterprises.

The transaction, according to CommScope’s CEO, Chuck Treadway, will allow the company to “increase focus and further strengthen” its priorities outlined in its ‘Next’ strategy, which focuses on its remaining segments and business units. “We believe CommScope’s OWN and DAS businesses are positioned to continue to perform well under Amphenol’s leadership,” he added.

Just how well these units have performed so far is debatable, given that in its latest earnings statement for the first quarter of 2024, CommScope reported a 24.1% year-on-year drop in OWN net sales to $196m.

While there is no breakdown provided for its DAS performance, the broader NICS unit, where this part of its business resides, also reported sinking net sales, down 36.6% to $180.3m for the period.

Alongside the financials announcement, the company’s CFO, Kyle Lorentzen, explained that CommScope is evaluating capital structure alternatives, including asset sales, to address its upcoming debt maturities.

Last year, the company agreed to divest its Home Networks business, which provides connected home devices, software and services to Vantiva – see CommScope finally offloads its problem child. The company’s debt pile amounts to $9.31bn, according to recent data.

For Amphenol, the acquisition means additional support for its “long-term growth and balanced end-market exposure across all areas of the electronics market,” claimed its president and CEO R. Adam Norwitt.

The company further claimed that the addition of advanced antenna and associated interconnect products and technologies will complement its product portfolio for next-generation wireless networks.

Furthermore, it stated that the combined OWN and DAS businesses are expected to reach approximately $1.2bn in full year 2024 sales. “In particular, we are encouraged that the businesses we are acquiring make up the former Andrew Corporation portfolio of products, a company with a rich history of innovation and technology leadership in the wireless industry. We look forward to supporting customers who are developing next-generation wireless networks around the world with these advanced solutions as well as our own existing complementary products”, added Norwitt.

- Yanitsa Boyadzhieva, Deputy Editor, TelecomTV