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Price of $950 mln can be increased by up to $200 mln

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Deal funded by mix of debt and equity instruments

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Prysmian acquired Encore last year for $4.2 bln

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To hold capital market day on Wednesday

(Adds details after second paragraph)

MILAN, March 25 (Reuters) - Italy's Prysmian

has agreed to buy U.S. connectivity device manufacturer Channell

Commercial Corp for up to $1.15 billion, the world's largest

cable maker said on Tuesday.

The deal, which comes less than a year after Prysmian's $4.2

billion acquisition of U.S. firm Encore Wire, expands the

Milanese group's footprint in North America, its most profitable

market.

The announcement comes as Prysmian prepares to hold an

investor day in New York on Wednesday, to outline its long-term

strategy and set new financial targets following the Encore

acquisition.

It is also expected to provide an update about plans to

potentially add a second listing for its shares in New York.

Prysmian said the Channell deal marked its first purchase in

a sector that complements its business of digital solution

cables, which supports the expansion of data centres and the

roll-out of 5G technology in the United States and Europe.

"Thanks to strengthening (our presence) in the connectivity

solutions space, we will be best placed to capture growth in the

market, which is being boosted by digitalisation and the

roll-out of AI," Prysmian Chief Executive Massimo Battaini said

in a statement.

Channell's price tag of $950 million could be increased

by up to another $200 million if the Texas-based company

achieves certain financial results this year, Prysmian said.

Prysmian said it would fund the Channell acquisition through

a "balanced mix" of debt and equity instruments, such as hybrid

bonds or sales of treasury shares.

Prysmian, which manufactures a wide variety of cables,

including for energy transmission and power grids, said it

expected to close the deal in the second quarter.

Founded in 1922, Channell employs around 1,000 people

and manufactures plastic and metal enclosures, copper wire

connectors, fibre-optic cable management systems and thermal

management products at three U.S. facilities.

(Reporting by Giulio Piovaccari; Editing by Valentina Za)