CommScope buying TE Connectivity's telecom, enterprise and wireless businesses for about $3B
CommScope is buying TE Connectivity Ltd.'s telecom, enterprise and wireless businesses for about $3 billion, which will help diversify its operations and broaden its geographic reach.
The businesses, made up of 65 facilities and approximately 10,000 employees, had annual revenue of approximately $1.9 billion in fiscal 2014. It has a strong presence in Europe, the Middle East, Africa and the Asia-Pacific region.
CommScope Holding Co. said Wednesday that it expects more than $150 million in annual savings starting in the third year after the transaction's closing. CommScope is based in Hickory, North Carolina.
The boards of both companies approved the deal, which is targeted to close by year's end.
TE Connectivity's stock gained nearly 7 percent in premarket trading.