Posted on
More from News
There has been plenty of expectation ever since CommScope first announced its intentions to take over TE Connectivity’s Broadband Network Solutions (BNS) business earlier this year, but the deal has now been confirmed.
The acquisition, valued at around $3 billion (£1.98 billion), comes as part of CommScope's efforts to strengthen itself as a leading provider of communications infrastructure.
The company is well aware of the need for deeper resource in order to address what it regards as a global rise in demand for network bandwidth, with the takeover widely seen as a step forward in forming an innovative company capable of excelling in creating solutions for indoor and outdoor wireless networks, data centres and central offices, connected and efficient buildings, and access and backhaul networks.
Excited to progress
Eddie Edwards, CommScope president and chief executive officer is understandably happy about the deal, outlining how it can fit into its overall long-term goals.
He said: “We are excited to move forward as one company positioned for continued success.
“Together, we look to accelerate industry innovation, solve more wired and wireless network challenges, and better serve customers in more markets around the world.
“With this acquisition, we will have significant new opportunities for future sales growth and cost efficiencies to strengthen CommScope’s financial foundation. The addition of the TE businesses is expected to immediately contribute to our profitable growth.”
A greater workforce
One of the most notable parts of the new deal is that CommScope has now seen its workforce grow to around 25,000 workers, holding a substantial presence in numerous geographic regions.
“I welcome our new team members from TE Connectivity and look forward to continuing to work closely with all employees at CommScope to ensure we continue to deliver superior technology, solutions and services to our customers and partners,” Mr Edwards added.
The company now holds a portfolio of approximately 9,800 patents and patent applications, overseeing research and development investments of over $200 million a year.
TE Connectivity Broadband Network Solutions (BNS) businesses will be operated as one of CommScope’s business segments, alongside the existing CommScope segments of Wireless, Enterprise and Broadband.
Current leader of the Broadband Network Solutions (BNS) team David Redfern will continue in his role, reporting to CommScope Chief Operating Officer Randy Crenshaw.
CommScope also expects to realise over $150 million in annual synergies by 2018, including more than $50 million in 2016 alone.
In fact, the company hopes to drive synergies across all areas of the business, including sales, marketing, general and administration, operations, and research and development.
