Amphenol's Acquisition of CCS Boosts Growth and Financial Prospects

Amphenol's acquisition of CCS from Commscope for $10.5 billion is expected to boost the company's growth prospects and financial performance. Analyst Asiya Merchant from Citi maintained a Buy rating on Amphenol, citing the deal's accretive impact on adjusted EPS and favorable valuation. The acquisition is projected to enhance Amphenol's position in the communications infrastructure market and drive sales and adjusted EBITDA growth. Merchant expects a 19.8% share price return, supporting the Buy rating.

Amphenol Corporation has announced a definitive agreement to acquire CommScope's Connectivity and Cable Solutions (CCS) business for $10.5 billion in cash. The acquisition, subject to customary post-closing adjustments, aims to expand Amphenol's interconnect product capabilities in the fast-growing IT datacom market and diversify its portfolio of fiber optic and other interconnect solutions [1].

The CCS business operates as three distinct entities: Data Center Connectivity Solutions, Broadband Communications, and Building Connectivity Solutions. These divisions primarily serve the IT datacom market, communications networks market, and industrial market, respectively. The acquisition will add significant fiber optic interconnect capabilities for artificial intelligence and data center applications, as well as a diverse range of industrial interconnect products for building infrastructure connectivity [1].

Amphenol anticipates that the CCS business will generate sales and EBITDA margins of approximately $3.6 billion and 26% in 2025, respectively. The acquisition is expected to be accretive to Amphenol's Diluted EPS in the first full year after closing, excluding acquisition-related costs [1]. The acquisition will be financed 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 the receipt of customary regulatory approvals and the satisfaction of other closing conditions [1].

Analyst Asiya Merchant from Citi maintained a Buy rating on Amphenol, citing the deal's accretive impact on adjusted EPS and favorable valuation. The acquisition is projected to enhance Amphenol's position in the communications infrastructure market and drive sales and adjusted EBITDA growth. Merchant expects a 19.8% share price return, supporting the Buy rating [2].

The acquisition follows Amphenol's earlier acquisition of the Andrew business from CommScope, further strengthening Amphenol's position in the interconnect market. The deal is expected to bring significant benefits to Amphenol, including enhanced market share and increased revenue streams [1].

References:
[1] https://investors.amphenol.com/news-and-events/news-details/2025/Amphenol-Corporation-to-Acquire-Connectivity-and-Cable-Solutions-Business-From-CommScope/default.aspx
[2] https://www.morningstar.com/news/business-wire/20250804292272/amphenol-corporation-to-acquire-connectivity-and-cable-solutions-business-from-commscope