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CommScope to buy Cable Exchange
Posted on Thursday, 13 July 2017 10:02
CommScope has agreed to purchase US fibre optic and copper cable assemblies maker Cable Devices, which trades as Cable Exchange, for an undisclosed amount.
The transaction is expected to be financed using cash on hand.
As a result of the acquisition, the leadership team and employees of Cable Exchange will join CommScope; however, the target will operate as a standalone division within the buyer’s connectivity unit.
Completion is expected within the next 60 days, subject a number of customary closing conditions, including the green light from certain regulatory bodies.
No further details of the acquisition were disclosed.
Based in California, Cable Exchange makes a variety of fibre optic and copper cables, trunks and related products used in high-capacity data centres and other business enterprise applications across the US.
The company, which was incorporated in 1986, provides private label assemblies and contract labour to some the largest original equipment manufacturers in the industry.
Founded in 2011, North Carolina-based CommScope offers broadband, enterprise, and wireless infrastructure operations.
The firm is listed on Nasdaq and its shares closed at USD 35.52 yesterday, valuing the business at over USD 6.85 billion.
In the three months ended 31st March 2017, CommScope posted net sales and adjusted operating income of USD 1.14 billion and USD 217.00 million, respectively.
Since the beginning of 2017, there have been 180 deals targeting radio and television broadcasting and wireless communications equipment manufacturers announced worldwide, according to Zephyr, the M&A database published by Bureau van Dijk.
The most valuable of these was UK investor Cevian Capital’s USD 1.06 billion acquisition of a 5.6 per cent stake in Swedish firm Telefonaktiebolaget LM Ericsson in May.
This was followed by Arris International’s agreement to purchase US firm Ruckus Wireless and a division of Brocade Communications Systems from Broadcom for roughly USD 800.00 million in February.
Other targets include Cobham, CPI International Holding and Zhejiang Uniview Technologies.
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