(Reuters) -Amphenol on Monday entered a $10.5 billion deal to buy CommScope’s connectivity and cable solutions unit, the largest purchase by the fibre-optic cable maker that would make it a key player in the market for U.S. wireless infrastructure.
The all-cash deal would help Amphenol to capitalize on the rising demand for artificial intelligence applications and high-speed infrastructure for data centers.
The Connecticut-based company’s shares rose 4% in premarket trading while CommScope surged nearly 80% as the asset sale is a crucial step to reduce its $9.4 billion debt as of December.
“The acquisition adds new fiber-optic interconnect competencies to our offerings for the communications networks market,” Amphenol CEO Adam Norwitt said in a statement.
Earlier this year, Amphenol bought CommScope’s mobile networks business, Andrew, for about $2 billion and last year purchased its outdoor wireless network and distributed antenna systems businesses for $2.1 billion.
The latest deal is expected to close in the first half of 2026 and will add to Amphenol’s diluted earnings per share in the first full year after closing.
CommScope said after repaying all its debt and redeeming all preferred equity held by global investment firm Carlyle, it would have significant excess cash.
Following the deal, the North Carolina-based company will retain its access network solutions business and part of its networking and security services.
Amphenol is planning to finance the acquisition through cash on hand and debt. It has already obtained financing commitment from J.P. Morgan Securities, BNP Paribas and Mizuho Bank.
The Wall Street Journal first reported that the companies are nearing a deal on August 3.
(Reporting by Kritika Lamba and Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)
