— Overview —
Amphenol Corporation (NYSE: APH) announced on August 4, 2025, that it has entered into a definitive agreement to acquire the Connectivity and Cable Solutions (CCS) business of CommScope Holding Company, Inc. (NASDAQ: COMM) for approximately $10.5 billion in cash, subject to customary closing adjustments. The transaction significantly enhances Amphenol’s portfolio in AI-focused data centers, communications networks, and industrial connectivity.
CommScope Refocuses on Core Business and Debt Reduction
The CCS division, CommScope’s largest business unit, generated $2.8 billion in net sales in 2024, largely fueled by the surging demand for generative AI-powered data centers.
In contrast, its other two units:
- Networking, Intelligent Cellular & Security Solutions (NICS) – now branded as RUCKUS Networks – earned $1.05 billion
- Access Network Solutions (ANS) brought in $360 million
Struggling with long-term debt, CommScope plans to use the $10 billion net proceeds (post taxes and transaction costs) to:
- Repay all outstanding debt
- Redeem all preferred equity held by The Carlyle Group
- Implement modest leverage on its remaining businesses
The company also announced plans to return some cash to shareholders in the form of dividends within 60–90 days post-closing.
Following the announcement, CommScope’s share price (NASDAQ: COMM) surged ~70%, closing at $14.32. CEO Chuck Treadway stated:
“We will continue to develop next-generation connectivity technologies through our RUCKUS and ANS businesses.”
Amphenol Expands Leadership in High-Growth Interconnect Markets
With this acquisition, Amphenol cements its position as a leading supplier in fiber optic and electronic interconnect solutions across critical sectors. Headquartered in Wallingford, Connecticut, Amphenol operates in 30+ countries, employs around 95,000 people, and posted $13.6 billion in revenue.
The acquisition of CCS will:
🔹 Strengthen its Data Center & AI Portfolio
The Data Center Connectivity Solutions segment of CCS provides advanced fiber solutions for hyperscale and AI-enabled data centers.
Amphenol CEO Adam Norwitt said the acquisition is “highly complementary” to their existing offerings in the IT/datacom sector.
🔹 Expand Capabilities in Broadband Communications
The Broadband Networks unit enhances Amphenol’s ability to serve ISPs and telecom providers with next-gen fiber infrastructure.
🔹 Grow in Smart Building and Industrial Connectivity
Through Building Connectivity Solutions, CCS supplies a broad range of products for both traditional and smart building technologies.
CCS Business Overview & Financial Impact
The CCS division consists of three main business lines:
- Data Center Connectivity Solutions – Serving IT/datacom markets with fiber interconnects
- Broadband Networks – Fiber and copper solutions for global telecom operators
- Building Connectivity Solutions – Infrastructure for commercial/industrial buildings
Amphenol projects that in calendar year 2025, CCS will deliver:
- $3.6 billion in revenue
- 26% EBITDA margin
The acquisition is expected to be accretive to Amphenol’s diluted EPS in the first full year after close, excluding acquisition-related costs.
Financing & Deal Conditions
The deal will be financed through cash on hand and committed debt facilities from:
The transaction is subject to:
- Regulatory approvals
- Shareholder approval from CommScope, required under Delaware law
Expected closing: First half of 2026
Industry Analyst Commentary
Jeff Heynen, VP at Dell’Oro Group, noted:
“There’s growing demand for fiber—across ISPs, broadband, and especially data centers. CCS is a valuable asset. This is a strong move for both CommScope and Amphenol.”
He also emphasized that CommScope’s divestiture was driven by debt, not a weakening in the fiber or broadband markets.
Conclusion: Positioning for the AI-Driven Future
This transaction highlights the accelerating demand for AI-ready infrastructure. With CCS’s ~15,000 employees, deep R&D capabilities, and extensive IP portfolio, Amphenol strengthens its global leadership in high-speed interconnects.
Norwitt called CCS a:
“World-class, iconic business with broad product capabilities, a strong innovation culture, and a great team. We look forward to welcoming them into the Amphenol family.”
