CommScope has completed its $7.4 billion acquisition of ARRIS International to become a leading telecom and enterprise network equipment company with revenues of $11.3 billion.
CommScope aims to strengthen its position in areas such as network convergence, fiber and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures.
CommScope will be competing with technology companies such as Ericsson, Huawei, Nokia, Cisco, Dell EMC, IBM, HPE, Juniper Networks, among others.
CommScope did not indicate any possible job cut in CommScope or ARRIS International and Ruckus. CommScope said it aims annual cost synergies of at least $150 million within three years.
CommScope is expected to generate nearly $1 billion of cash flow from operations in the first complete year post-close, and expects to use the free cash flow to pay down debt.
CommScope has expanded its product offerings and R&D capabilities, with the combined company having approximately 15,000 patents and patent applications and approximately $800 million in average annualized R&D spending.
“This is a major milestone in the evolution of these two great companies and a significant moment for our industry,” said Eddie Edwards, president and chief executive officer, CommScope.
Bruce McClelland, formerly chief executive officer of ARRIS, will be chief operating officer at CommScope.
Carlyle Group has picked up minority stake in CommScope through a $1 billion investment as part of CommScope’s financing of the transaction. CommScope did not reveal the specific stake of Carlyle Group in CommScope.
