You are here: Home » Reuters » News
Business Standard

Telecom gear maker CommScope to buy Arris in 5G push


(Reuters) - U.S. Holding Co Inc said on Thursday it would buy Plc in a $7.4 billion deal to bulk up its business ahead of the global roll-out of

The offer price of $31.75 per share represents a premium of 14 percent over Arris' Wednesday close. Excluding debt repayment, the deal is valued at about $5.69 billion, according to calculations.

CommScope, which was taken public by private equity firm LP in 2013, sells to the and Arris makes modems and set-top boxes for the same industries.

The deal comes as companies are spending heavily to upgrade their infrastructure to handle and get ready to roll out networks.

had reported about a possible deal between the two companies last month.

Separately, Carlyle will also make an $1 billion equity in for a stake of about 16 percent.

Allen & Co LLC, Deutsche Bank, J.P. Morgan Securities LLC, and BofA Merrill Lynch were financial advisers to advised Arris.

The deal is expected to close in the first half of 2019.

(Reporting by and in Bengaluru; Editing by and Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 17:48 IST