Amphenol's Stock Jumps 3.5% on Acquisition of CommScope's Connectivity Business

Amphenol's shares rose 3.5% after the company announced a $10.5 billion acquisition of CommScope's Connectivity and Cable Solutions business, bolstering its position in the IT datacom and communications network markets. The deal is expected to be accretive and add advanced fiber optic interconnect products, vital for AI and data center sectors. The acquisition is seen as a meaningful but not fundamental change to the market's perception of the business.

Amphenol Corporation (NYSE: APH) announced a definitive agreement to acquire CommScope's (NASDAQ: COMM) Connectivity and Cable Solutions (CCS) business for $10.5 billion in cash, subject to customary post-closing adjustments. This acquisition expands Amphenol's interconnect product capabilities in the fast-growing IT datacom market, particularly adding fiber optic interconnect products for artificial intelligence and other data center applications, and further diversifies its broad portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets [1].

The CCS business operates as three distinct entities: Data Center Connectivity Solutions, which primarily sells fiber optic interconnect solutions to customers in the IT datacom market; Broadband Communications, which primarily sells fiber optic and other interconnect solutions to customers in the communications networks market; and Building Connectivity Solutions, which primarily sells a broad array of interconnect solutions integrated into existing and next-generation building technology in the industrial market [1].

Amphenol expects the CCS business to 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 Earnings Per Share (EPS) in the first full year after closing, excluding acquisition-related costs [1].

The transaction is expected to close in the first half of 2026, with Amphenol intending to finance the acquisition through a combination of cash on hand and debt. The company has obtained committed financing from J.P. Morgan Securities LLC, BNP Paribas, and Mizuho Bank, Ltd. to fund the transaction [1].

Amphenol's shares rose 3.5% after the announcement, reflecting investor optimism about the strategic value of the acquisition. While the deal is seen as a meaningful addition to Amphenol's capabilities, it is not expected to fundamentally change the market's perception of the business [2].

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://finance.yahoo.com/news/amphenol-corporation-acquire-connectivity-cable-110000455.html