Advanced Television

CommScope near to $5.6bn ARRIS deal?

November 8, 2018

By Colin Mann

Following’s revelation that telecommunications and cable equipment vendor CommScope was in talks to acquire entertainment, communications and CPE technologist ARRIS International, reports suggest that CommScope is nearing a deal at more than $31 a share.

A deal would give CommScope more scale with a more diversified product base, while it would provide an exit for ARRIS as fewer customers watch traditional TV from set-top boxes, a major part of its business.

The all-cash transaction could be announced as soon as November 8th, according to insiders, who point out that a deal hasn’t been signed and could still fall apart.

A transaction would more than double the size of CommScope, whose market capitalisation is $4.8 billion. ARRIS has a market value of about $4.5 billion, and at $31 per share, ARRIS would have an equity valuation of $5.6 billion, plus about $1.6 billion in net debt.

ARRIS nearly doubled in size in 2016 after buying rival set-top box vendor Pace for $2.1 billion.

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