CommScope buys ARRIS for $7.4 billion

CommScope, a manufacturer of telecommunications products, acquires set-top box-maker ARRIS for $7.4 billion (€6.5 billion) in cash. The deal is partly financed by The Carlyle Group through an equity investment of USD 1 billion in CommScope.

ARRIS works on broadband cables, among other things, and derives a large part of its turnover from set-top boxes for paid television. For example, it provides cable operators with the hardware, software and services needed to offer the Internet, telephony and television to end-users.

The company grew as it purchased the Motorola Mobility home unit from Google in 2012 and acquired Pace, a British manufacturer of set-top boxes, in 2015. In 2017, ARRIS also acquired Ruckus Wireless from Broadcom.

CommScope was once one of the world’s largest providers of coaxial cables for business use and telephone companies. Now, however, it is a manufacturer of telecom products. Together, the two companies hope to capture a share of the emerging 5G, fibre-optic and IoT markets, as well as in other sectors where there is strong growth. These include private networks and connected houses.

Additions

The companies together expect to have a turnover of about 11.3 billion dollars. “For several years, we have quietly watched how Ruckus has grown into a strong leader in the market,” says CommScope’s CEO Eddie Edwards. “The Ruckus team will be an important and good addition to CommScope.

“Our complementary offers, footprints and customer relationships offer significant diversity and the transaction strengthens our position in the segments with the greatest potential for growth. The new spectrum planned for 5G is nearby and we now expect a larger wireless infrastructure for indoor connectivity to be needed, using licensed and unlicensed technologies, which the merged company now has.”