Amphenol 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 is expected to enhance Amphenol's position in the fiber optic and broadband connectivity sectors, particularly within the IT datacom and communications networks markets.

The CCS segment comprises three divisions: Data Center Connectivity Solutions, Broadband Communications, and Building Connectivity Solutions. Collectively, these divisions are projected to generate approximately $3.6 billion in sales with an EBITDA margin of 26% in 2025. The transaction is anticipated to close in the first half of 2026, pending customary regulatory approvals and shareholder consent.

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 is a premier business with a wide array of innovative fiber optic and other interconnect technologies, as well as a robust research and development capability.

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

CommScope expects net proceeds of approximately $10 billion after taxes and transaction expenses. The company plans to use these proceeds to repay all debt, redeem all preferred equity held by global investment firm Carlyle, and distribute the remaining cash to shareholders as a dividend within 60 to 90 days following the closing of the transaction.

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 (OWN) and Distributed Antenna Systems (DAS) businesses, which was completed on February 3, 2025. Additionally, on August 18, 2025, Amphenol announced a $1 billion acquisition of Trexon, a cable assembly firm specializing in high-reliability connectivity products for industries including military, medical, and quantum computing.

The acquisition is expected to be accretive to Amphenol's diluted earnings per share in the first full year after closing. Amphenol intends to finance the acquisition through a combination of cash on hand and debt, with committed financing from J.P. Morgan Securities LLC, BNP Paribas, and Mizuho Bank, Ltd.

This move reflects a broader trend of consolidation in the network infrastructure industry, driven by increasing demand for high-speed data transmission and AI-driven applications. The acquisition positions Amphenol to capitalize on these growing markets and further diversify its product offerings.

The transaction is subject to customary regulatory approvals and is expected to close in the first half of 2026.