10:56 AM EDT, 08/04/2025 (MT Newswires) -- Amphenol ( APH ) agreed to acquire the connectivity and cable solutions business of CommScope ( COMM ) in a $10.5 billion cash deal, expanding Amphenol's ( APH ) fiber optic interconnect capabilities.

The transaction, which requires regulatory and shareholder approval, is expected to complete in the first half of 2026, the companies said in separate statements Monday. Shares of Amphenol ( APH ) rose 3.5% intraday, while CommScope ( COMM ) surged 73%.

Amphenol ( APH ) expects the acquisition to expand its interconnect product capabilities in the IT datacom market, especially for artificial intelligence and other data center applications. The fiber optic cable maker anticipates the deal to further diversify its solutions in the communications networks and industrial markets.

CommScope's ( COMM ) connectivity and cable solutions business is comprised of data center and building connectivity solutions, as well as broadband communications. The business is projected to report sales of roughly $3.6 billion in 2025, Amphenol ( APH ) said.

"(Connectivity and cable solutions) broad portfolio of fiber optic interconnect solutions for the rapidly growing IT datacom market, including for artificial intelligence applications, is highly complementary to Amphenol's ( APH ) already strong product offerings in this market," Amphenol ( APH ) Chief Executive R. Adam Norwitt said in the statement. "The acquisition adds new fiber optic interconnect competencies to our offerings for the communications networks market, while also expanding our capabilities in the industrial market through CCS's building infrastructure connectivity solutions."

Amphenol ( APH ) estimates the deal to be accretive to its earnings on a per-share basis in the first full year after completion, excluding acquisition-related costs. The company aims to fund the purchase with cash on hand and debt, as well as a committed financing from a few banks.

CommScope ( COMM ) expects to receive about $10 billion in net proceeds from the transaction. After repaying all of its debt and redeeming preferred equity held by Carlyle (CG), the company anticipates to still have substantial cash to distribute to shareholders as a dividend after the deal completes.

"I'm excited to announce this transformational deal that unlocks equity value, returns cash to our shareholders and strengthens our remaining businesses," CommScope ( COMM ) CEO Chuck Treadway said in the separate statement. "CommScope's ( COMM ) CCS business is positioned to continue to perform well under Amphenol's ( APH ) leadership."

Earlier in the year, Amphenol ( APH ) acquired CommScope's ( COMM ) outdoor wireless networks and distributed antenna systems businesses.

CommScope ( COMM ) separately reported on Monday second-quarter adjusted earnings of $0.44 per share, up from $0.03 the year before, topping the FactSet-polled consensus of $0.24. Sales climbed 32% to $1.39 billion, ahead of the Street's view for $1.25 billion. The connectivity and cable solutions segment's sales rose to $875.4 million in the quarter from $728.4 million in the prior-year period.

Price: 107.61, Change: +3.30, Percent Change: +3.16