Amphenol Corporation to Acquire CommScope's CCS Business for $10.5 Billion

Amphenol Corporation has announced a definitive agreement to acquire CommScope's Connectivity and Cable Solutions (CCS) business for $10.5 billion in cash. This strategic acquisition aims to enhance Amphenol's fiber optic interconnect capabilities, particularly in the IT datacom and communications networks markets. The transaction is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions.

The CCS business is projected to generate approximately $3.6 billion in sales with EBITDA margins of about 26% in 2025. Amphenol anticipates that the acquisition will be accretive to its diluted earnings per share in the first full year after closing. The company plans to finance the purchase through a combination of cash on hand and debt, with committed financing from J.P. Morgan Securities LLC, BNP Paribas, and Mizuho Bank, Ltd.

R. Adam Norwitt, President and CEO of Amphenol, expressed enthusiasm about the acquisition, stating, "We are excited by the prospect of adding the CCS business and its more than 15,000 talented employees to the Amphenol family." He highlighted that CCS's portfolio of fiber optic interconnect solutions for the rapidly growing IT datacom market, including applications in artificial intelligence, complements Amphenol's existing offerings.

CommScope's CEO, Chuck Treadway, described the deal as transformational, emphasizing its role in unlocking equity value and returning cash to shareholders. He noted that the company's remaining businesses, ANS and RUCKUS, will continue to focus on developing next-generation network connectivity.

CommScope expects net proceeds of approximately $10 billion after taxes and transaction expenses. The company plans to use a portion of the proceeds to repay all existing debt and redeem preferred equity held by investment firm Carlyle. With the remaining funds, CommScope intends to issue a cash dividend to shareholders within 60 to 90 days after the deal closes.

Following the announcement, CommScope's shares surged by 42% in premarket trading, while Amphenol's shares rose approximately 2%.

This acquisition follows Amphenol's earlier purchase of CommScope's Outdoor Wireless Networks and Distributed Antenna Systems businesses for $2.1 billion in cash, completed in February 2025. These strategic moves indicate Amphenol's commitment to expanding its capabilities in the communications networks sector.

The acquisition aligns with Amphenol's strategy to expand its broadband portfolio and strengthen its position in the growing 5G and broadband markets. By integrating CCS's fiber optic interconnect solutions, Amphenol aims to enhance its offerings in the IT datacom market, particularly for artificial intelligence and other data center applications. Additionally, the acquisition diversifies Amphenol's portfolio in the communications networks and industrial markets.

As the transaction progresses toward its anticipated closing in the first half of 2026, industry observers will be watching how this significant acquisition influences the competitive landscape of the connectivity and cable solutions market.