Amphenol has accomplished its $10.5 billion money acquisition of CommScope’s CCS enterprise, leaving CommScope with Ruckus and ANS, rebranded collectively as Vistance Networks. ANS has been rebranded individually as Aurora Networks. The deal streamlines CommScope, and expands Amphenol’s fiber, AI, and telco infra play.
In sum – what to know:
Transaction element – Amphenol has acquired CommScope’s CCS enterprise, its largest unit; CommScope retains Ruckus and ANS.
Amphenol upside – Amphenol strengthens its hyperscaler, telecom, and protection performs; the deal enhances its prior Andrew buy.
CommScope affect – CommScope turns into leaner, concentrating on broadband entry and campus networks, whereas decreasing debt.
US fibre optic specialist Amphenol Company has accomplished its $10.5 billion money acquisition of CommScope’s Connectivity and Cable Options (CCS) enterprise. It leaves the North Carolina agency with simply its Entry Networks Options (ANS) and Ruckus Networks companies, which might be rebranded collectively as Vistance Networks from January 14. Individually, its ANS phase might be rebranded as Aurora Networks.
The deal was first introduced again in August, and has closed on time; it was scheduled to finish through the first half of 2026. The corporate has been dubbed internally as RemainCo for the reason that Amphenol settlement in August. Ruckus Networks focuses on enterprise Wi-Fi, and campus / venue connectivity; it posted round $1.05 billion in revenues in 2024. ANS supplies broadband infrastructure for service suppliers, and generated $360 million in 2024.
The CCS unit was CommScope’s greatest enterprise, by a distance. It contains most of its fiber and copper cabling, connectivity, and telecom merchandise. Adlane Fellah, analyst at Maravedis Analysis, wrote after the deal in August it was to contribute $3.6 billion in gross sales with a 26 p.c EBITDA margin in 2025. CommScope mentioned proceeds from the sale might be used to repay excellent debt and redeem “most popular fairness”, held by international funding agency Carlyle.
Fellah put this at about $7.2 billion (out of $10.5 billion). CommScope acknowledged: “After including modest leverage on the remaining enterprise, the corporate may have important extra money.” This can cowl shareholder dividends, valued at the very least $10 per share, to be delivered inside 60 to 90 days. Amphenol mentioned it expects the CCS unit to generate 2026 gross sales of $4.1 billion; will probably be included into its ‘communications options’ phase, it mentioned.
Fellah at Maravedis Analysis mirrored on a slimmed-down CommScope in August: “This divestiture represents not only a monetary windfall however a strategic pivot for a corporation that has spent years navigating trade disruption, integration challenges, and debt stress…. [Its] trajectory has been marked by a collection of acquisitions and divestitures which have created confusion and uncertainty about its long-term route.”
Ruckus Networks has been handed about; it was acquired for $1.5 billion in Could 2016 by Brocade Communications Programs, which was in flip acquired by Broadcom for $5.9 billion in November 2016. It was then acquired from Broadcom by Arris Worldwide for $800 million in late 2017, earlier than CommScope swooped for Arris in early 2019, in a $7.4 billion deal.
In the meantime, ANS was bought to UK-based set-top field agency Tempo in 2013 for $310 million, which was bought to Arris in 2015 for $2.1 billion – and went to CommScope with its buy of Arris in 2019. As Jeff Baumgartner at Mild Studying observes: “Amphenol is principally taking up what was generally known as CommScope earlier than the Arris deal.” As Fellah mentioned: “The 2019 acquisition of Arris… considerably expanded [its] portfolio but additionally added substantial debt.”
He went on: “Subsequent efforts to streamline operations – together with the failed try to spin off its residence networks unit and the latest sale of its CCS enterprise – have solely added to the notion of an organization in fixed flux. This sample of strategic shifts has left traders and clients questioning the corporate’s focus and stability… The [final] sale of CCS marks a turning level for CommScope.
“The corporate is shedding a legacy hardware-heavy enterprise in favour of a extra targeted, agile construction centred on broadband entry and enterprise networking. With its stability sheet reset and a tighter strategic focus, [it] is positioning itself for a brand new chapter – leaner, extra nimble, and with fewer distractions from legacy operations. The longer term will inform how the leaner model might be extra targeted on long-term objectives moderately than short-term monetary diktat, to revive among the misplaced confidence out there.”
In the meantime, the CCS acquisition has good symmetry for Amphenol, which picked up CommScope’s Andrew enterprise in 2024 for $2.1 billion – which included its Distributed Antenna Programs (DAS) and Outside Wi-fi Networks (OWN) divisions. There may be clear crossover, right here: its outdated DAS unit provides indoor mobile for enterprises, and Ruckus presents switches, controllers, Wi-Fi and CBRS entry factors, plus cloud software program and administration programs.
Each Ruckus and the OWN unit have been a part of CommScope’s Networking, Clever Mobile & Safety Options (NICS) unit. The Andrew model, as soon as synonymous with telecom community componentry, has been revived below Amphenol’s stewardship. Amphenol posted a “file Q3” in December with “income and earnings rising sharply on surging AI knowledge centre demand”, reported Merely Wall St.
It mentioned on the time the pending acquisition of CommScope’s CCS unit will “considerably develop its AI, communications infrastructure, and protection publicity”. It wrote: “To personal Amphenol, you’ll want to imagine its AI knowledge centre momentum and high-end connectivity focus can offset lumpier tech spending and integration danger from aggressive dealmaking. The file Q3 outcomes and stronger steering reinforce AI as the important thing close to time period catalyst.”
It added that the CCS buy “instantly ties Amphenol’s AI, communications infrastructure, and protection publicity to a a lot bigger acquisition that have to be built-in whereas the corporate is already investing closely to help AI development.” R. Adam Norwitt, president at Amphenol, mentioned the deal provides “important fiber optic interconnect capabilities” for hyperscaler and telecoms networks, plus a “various vary of commercial interconnect merchandise” for enterprises.
CommScope will focus its efforts on innovation and development through its remaining enterprise, and likewise make investments in fiber entry networks, edge networking, and campus Wi-Fi options – mentioned Fellah, citing Chuck Treadway, chief government at CommScope / Vistance Networks. Treadway acknowledged: “CCS is positioned to do nicely below Amphenol… We are going to transfer ahead with the identical dedication to design and ship clever options with the identical degree of expertise and repair that our clients and companions have come to count on and belief.”
