Amphenol shares rise 4.7% pre-market following acquisition of CommScope's connectivity and cable solutions business for approximately $10.5 billion

Amphenol shares rise 4.7% pre-market following acquisition of CommScope's connectivity and cable solutions business for approximately $10.5 billion

Amphenol Corporation (NYSE: APH) saw its shares rise by 4.7% in pre-market trading on Monday, July 2, 2025, following the announcement of its acquisition of CommScope's Connectivity and Cable Solutions (CCS) business for approximately $10.5 billion in cash [1]. The acquisition is expected to expand Amphenol's interconnect product capabilities in the fast-growing IT datacom market, particularly in fiber optic interconnect solutions for artificial intelligence and other data center applications.

The CCS business operates across three distinct segments: Data Center Connectivity Solutions, Broadband Communications, and Building Connectivity Solutions. These segments provide fiber optic and other interconnect solutions to customers in the IT datacom, communications networks, and industrial markets, respectively. The acquisition is anticipated to generate sales of approximately $3.6 billion and EBITDA margins of 26% in 2025 [1]. This acquisition is expected to be accretive to Amphenol's Diluted EPS in the first full year after closing, excluding acquisition-related costs.

Amphenol intends to finance the acquisition through a combination of cash on hand and debt, with committed financing obtained from J.P. Morgan Securities LLC, BNP Paribas, and Mizuho Bank, Ltd. The transaction is expected to close in the first half of 2026, subject to regulatory approvals and satisfaction of other closing conditions [1].

The acquisition is seen as highly complementary to Amphenol's existing product offerings, particularly in the rapidly growing IT datacom market. It will also expand Amphenol's capabilities in the communications networks and industrial markets. The company's President and CEO, R. Adam Norwitt, expressed excitement about the addition of the CCS business and its 15,000 employees to the Amphenol family [1].

In overnight trading, CommScope stock jumped 22%, while Amphenol stock edged down 0.30%. The deal is expected to be Amphenol's largest acquisition to date and will boost its data center offerings to meet the surging artificial intelligence (AI) demand [2].

References:
[1] https://www.businesswire.com/news/home/20250804292272/en/Amphenol-Corporation-to-Acquire-Connectivity-and-Cable-Solutions-Business-From-CommScope
[2] https://stocktwits.com/news-articles/markets/equity/amphenol-reportedly-closes-in-on-buy-of-commscope-broadband-cable-business/chrXJUJRdR8