CommScope Announces Sale of Home Networks Business to Vantiva

CommScope, a global leader in network connectivity, has announced its plans to sell its Home Networks Business to Vantiva, formerly known as Technicolor. This strategic move is part of CommScope’s ongoing portfolio optimization efforts under its CommScope NEXT initiative.

After carefully considering various alternatives, CommScope has determined that Vantiva is the ideal partner for its Home Networks Business. The transaction is expected to be completed in the fourth quarter of 2023. As part of the deal, CommScope will receive a cash payment and a minority equity interest in Vantiva.

By joining forces, CommScope and Vantiva aim to leverage their shared vision, commitment to innovation, and focus on delivering high-quality products and services. The combination of these two businesses presents a promising opportunity for future success, particularly in the challenging environment of the Home Networks industry.

Chuck Treadway, CEO of CommScope, expressed confidence in the partnership, stating, “We see compelling financial and commercial reasons for the combination of these two businesses at this time, and we are excited about the future opportunities for our employees, customers, and partners around the world.”

Luis Martinez-Amago, CEO of Vantiva, highlighted the transformative nature of the acquisition, emphasizing that it will reinforce Vantiva’s Connected Home operations, accelerate its innovation roadmap, and expand into new markets through additional commercial partnerships. The acquisition of Home Networks is expected to substantially increase Vantiva’s scale and generate synergies that will strengthen its free cash flow generation potential.

The transaction is subject to regulatory approvals and approval by Vantiva shareholders. CommScope has granted Vantiva a binding call option to acquire the Home Networks business, allowing for the necessary consultation period in France.

Advising CommScope in this transaction, Evercore is serving as the financial advisor, while Alston & Bird and De Pardieu Brocas Maffei are acting as legal advisors.

CommScope’s Home Networks business is a global leader in connected home devices, software, and services, providing reliable and secure home networking solutions. Vantiva, on the other hand, is a global technology leader focused on designing and developing innovative products and solutions that connect consumers worldwide.

As this partnership unfolds, both companies are poised to create a stronger presence in the market and deliver enhanced value to their stakeholders, including end-consumers, customers, employees, shareholders, and lenders.

About CommScope:
CommScope is a technology company that specializes in creating advanced wired and wireless networks. With a global team of employees, innovators, and technologists, CommScope empowers customers to anticipate what’s next and invent what’s possible.

For more information, visit www.commscope.com.

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Source: CommScope