Vantiva to Acquire CommScope’s Home Networks Division, Boosting Business Scale

French technology company Vantiva has announced its agreement to acquire the Home Networks division of U.S. network infrastructure provider CommScope. In exchange for the division, CommScope will receive a 25% stake in Vantiva. This strategic move is set to significantly increase the scale of Vantiva’s business while generating synergies that will strengthen its free cash flow generation potential.

The deal includes a maximum earnout of $100 million in cash for CommScope, contingent on Vantiva achieving an EBITDA equal to or exceeding 400 million euros ($418.92 million) in a given fiscal year over the five years following the first full year after closing. The acquisition is expected to generate over 100 million euros in pre-tax cash synergies by fiscal year 2026.

Vantiva, formerly known as Technicolor, is an independent company that designs and develops products and solutions connecting consumers worldwide. The acquisition of Home Networks will further enhance Vantiva’s offerings, particularly in the area of devices that connect homes to the internet and video set-top boxes.

Luis Martinez-Amago, CEO of Vantiva, expressed his enthusiasm for the deal, stating, “The acquisition of Home Networks will substantially increase the scale of our business, while also generating synergies, which will significantly strengthen our free cash flow generation potential.”

The transaction is expected to close by the end of 2023, subject to regulatory approvals. Shares in Vantiva have already surged by 30% following the announcement, reflecting the market’s positive response to the news.

This acquisition marks a significant milestone for Vantiva, positioning the company for future growth and solidifying its position as a leader in the technology industry.