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Multinational network infrastructure provider CommScope has announced the acquisition of Arris International in a landmark deal that will bring together two major players in the global network infrastructure sector.
Settled via an all-cash transaction for $31.75 (£24.60) per share with a total value of $7.4 billion, the purchase will now create a new business capable of delivering annual revenue of $11.3 billion and adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of approximately $1.8 billion.
In addition, global alternative asset manager The Carlyle Group has re-established majority ownership of CommScope through a $1 billion minority equity investment as part of the financing of this transaction.
Eddie Edwards, president and chief executive officer at CommScope, stated: "After a comprehensive evaluation of our business and the evolving industry we operate in, we are confident that combining with Arris is the best path forward for CommScope to grow and provide the greatest returns for shareholders."
Mr Edwards went on to add that the new partners will bring together a "complementary set of assets and capabilities" that will enable new and innovative product development and solutions that neither company could have achieved on their own.
Overall, the new combined company will aim to bring together best-in-class capabilities in network access technology and infrastructure and in the creation of end-to-end, comprehensive solutions.
Following completion of the arrangement, Mr Edwards will continue in his role as president and chief executive officer of CommScope, while Bruce McClelland and other members of the Arris leadership team will be joining the combined company.
The transaction is now subject to final approvals and is expected to be complete in the first half of 2019.
