CommScope Completes ARRIS Acquisition

 

  • Arris
  • CommScope
  • Ruckus Networks

HICKORY, NC — CommScope, a global leader in infrastructure solutions for communications networks, has completed its acquisition of ARRIS International, a global provider of entertainment and communications solutions. Combined with ARRIS, CommScope is expected to drive profitable growth in new markets and shape the future of wired and wireless communications. With the completion of this transaction, CommScope will be better positioned to benefit from long-term industry growth trends, including network convergence, fiber and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures. 

The acquisition brings together two companies with a unique set of complementary assets and capabilities that are expected to enable end-to-end communications infrastructure and connectivity solutions, something that neither company could achieve on its own. The combination of the companies, which includes Ruckus Networks, is expected to create new opportunities across multiple markets, while increasing the companies’ relevance and importance with existing networking customers.

Growth Opportunities
In addition to creating long-term growth opportunities, the acquisition also is structured to deliver near-term financial benefits to CommScope, including an expected 30-plus percent accretion to adjusted earnings per share in the first full year post-close and annual cost synergies of at least $150 million within three years. Pro forma 2018 revenues of the combined company were approximately $11.3 billion. 

CommScope also is expected to generate nearly $1 billion of cash flow from operations in the first complete year post-close, and expects to use the free cash flow to aggressively pay down debt. Through the completion of the transaction, CommScope has expanded its product offerings and R&D capabilities, with the combined company having approximately 15,000 patents and patent applications globally and approximately $800 million in average annualized R&D spending.

“I believe this is a once-in-a-lifetime combination of two great companies that are poised to make a lasting impact on the communications industry and the customers we serve,” said Bruce McClelland, formerly chief executive officer of ARRIS and now chief operating officer at CommScope. “Together, we combine great employee talent and experience, an impressive record of innovation and industry firsts, and a sharp focus on creating a world-class customer experience. The entire ARRIS team and I are eager to get started and help make CommScope one of the top names in technology.”

 

Comments

Read what others have to say, and share your own thoughts with the community.

2000 characters remaining
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Speakers – Summit 2019
BBC Washington, DC
2019 Exhibitor List
Multifamily Educational Series
2019 Exhibitor/Sponsor List
2019 Summit Floor Plan
DAY ONE HIGHLIGHTS – 2019
DAY FOUR HIGHLIGHTS – 2019
DAY TWO HIGHLIGHTS – 2019
DAY THREE HIGHLIGHTS – 2019

© 2019 Broadband Properties, LLC

Privacy Policy

Web Design and Web Development by Buildable