Key Takeaways
- Amphenol bought CommScope Holding Co.’s Connectivity and Cable Solutions (CCS) business for $10.5 billion in cash.
- The deal boosts the electronics component maker’s reach into the IT datacom market, especially for artificial intelligence applications.
- The news sent CommScope shares soaring, and Amphenol’s traded at a record high.
Shares of CommScope Holding Co. (COMM) skyrocketed 75% Monday when electronics component maker Amphenol (APH) purchased its Connectivity and Cable Solutions (CCS) operation for $10.5 billion in cash. Amphenol shares traded at an all-time high.
Wallingford, Conn.-based Amphenol said the acquisition will boost its “interconnect product capabilities in the fast-growing IT datacom market, particularly adding fiber optic interconnect products for artificial intelligence and other data center applications.” It noted that the unit will help diversify its “portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets.”
CEO R. Adam Norwitt pointed out that CCS’s fiber optic interconnect solutions for the IT datacom sector, including for artificial intelligence applications, “is highly complementary to Amphenol’s already strong product offerings in this market.”
Amphenol anticipates the addition of CCS will create sales of about $3.6 billion, and EBITDA margins of 26%, and be accretive to earnings per share in the first full year after the completion of the deal. It expects that to happen in the first half of next year.
CommScope Holding Co. shares traded at their highest level in three years. Shares of Amphenol gained 3% Monday and are up 55% in 2025.
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