Amphenol wraps acquisition of CommScope’s DAS and outdoor wireless business lines
For more on Amphenol and CommScope:
- Amphenol Corporation to acquire CommScope’s mobile networks business
- Uncertainty continues to impact CommScope’s core business
- CommScope acquires Casa Systems’ cable business assets
Also, Keep up to date with Lightwave+BTR’s earnings coverage:
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Amphenol has completed its purchase of CommScope’s Outdoor Wireless Networks (OWN) and Distributed Antenna Systems (DAS) businesses, giving it more capabilities to serve new targeted wireless deployments.
This acquisition's completion also marks the return of the Andrew Corp. name, which became part of CommScope when it purchased the company for $2.65 billion in 2007.
The new Andrew unit will add 4,000 new employees and contribute $1.3 billion in sales to Amphenol's Communications Solutions Segment in 2025.
Post-closing, the acquisition is expected to be approximately $0.06 accretive to Amphenol’s 2025 earnings per share, which excludes acquisition-related expenses. The OWN and DAS businesses will be included in the Communications Solutions Segment.
CommScope’s ongoing restructuring
This deal is also a significant part of CommScope’s restructuring efforts through its NEXT strategy it unveiled in 2021.
NEXT is focused on reallocating resources to business lines that it says have near—and long-term growth opportunities. Its sale of the DAS and OWN unit reflects an effort to relieve itself of underperforming pieces of its portfolio.
When CommScope purchased Andrew in 2007, the aim was to create what it hailed as a one-stop shop for " last-mile” solutions.
However, CommScope’s ambitions failed to materialize.
CommScope’s OWN segment, which includes the DAS business, has faced various financial struggles. In the first quarter of 2024, CommScope reported OWN sales dipped 24.1 percent year-on-year to $196 million.
The company said the decline was due to rising inflation and service providers cutting back on capital expenditure as they worked through what industry watchers called an inventory glut, particularly in North America.
Its sale of the OWN and DAS assets signals that it will now focus on growing its structured cabling and enterprise Wi-Fi units.
Like the sale of its Home Networks Business to Vantiva, CommScope's OWN and DAS sale to Amphenol is part of a broader effort to manage its debt situation. CommScope has a $9.3 billion debt load, with $1.27 billion due in June 2025.
CommScope will likely provide more details about its ongoing restructuring process when it announces its fourth-quarter earnings on February 26.
Private wireless’ new moment
By re-establishing the Andrew name under a new unit could enable it to battle competitors like JMA and Solid more effectively, which were recently awarded RAN development grants of $44 million and $28 million from the U.S. government,
Amphenol’s timing also reflects the growth of OWN and DAS system wireless systems.
Verizon, for example, continues to secure new private wireless network deals with high-profile organizations such as Xerox, Cummins, FIFA, and, more recently, the U.S. Air Force.
According to Grandview Research, the global distributed antenna systems market was valued at $9.87 billion in 2024 and is projected to grow at a CAGR of 18.6% from 2025 to 2030.
The research firm said the market is “primarily driven by the proliferation of smartphones and mobile devices and the expansion of 5G networks, which drive the need to enhance mobile data connectivity and coverage, especially in densely populated urban areas and large venues.”
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Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.