[ad_1]
CommScope Holding said Carlyle Group is a 16% stake in the company.
Photo:
Davis Turner / Bloomberg News
Carlyle Group
is reinvesting in CommScope Holding Co. to help the network infrastructure firm expand its wired and wireless communication networks.
CommScope said Thursday it has agreed to buy Arris International PLC in an all-cash deal valued at $ 4.93 billion. Arris's debt, Arris shareholders will receive $ 31.75 a share.
CommScope plans to finance the deal in a $ 1 billion investment from Carlyle. The private-equity firm bought CommScope in 2011, took it public in 2013 and sold off its remaining shares in 2016.
This latest investment gives Carlyle a 16% stake in CommScope, the company said.
The remainder of the deal will be financed by J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Deutsche Bank Securities LLC.
The Arris deal is expected to close in the first half of next year. Upon completion, CommScope's Eddie Edwards will remain president and chief executive, and Arris CEO Bruce McClelland will join the combined company.
Sept. 30. Arris had $ 6.7 billion in revenue over that period. $ 11.3 billion, based on financial data for the two companies for the 12 months ended.
On Thursday, CommScope also posted third-quarter earnings. The company said rose profit 25 percent to $ 63.8 million and sales climbed 2 percent to $ 1.15 billion. We have a basis, the company earned 59 cents a share. Analysts were expecting a 66-cent earnings and $ 1.22 trillion share.
Shares of CommScope fell 10% while Arris's stock rose 11% in premarket trading Thursday.
Write to Kimberly Chin at [email protected]
Source link
