Tuesday, June 26, 2007

CommScope to Acquire Andrew for $2.6 Billion

CommScope, which is the global leader in structured cabling systems for business enterprise applications and also the largest manufacturer of coaxial cable for Hybrid Fiber Coaxial (HFC), agreed to acquire Andrew Corp. in a deal valued at $2.6 billion.

Andrew provides broad-based wireless solutions for antennas, cable products, base station subsystems, in-building and distributed coverage, geolocation systems and satellite communications.

The merger will create a global leader in infrastructure solutions for communications networks. Its portfolio will include structured cabling solutions for the business enterprise; broadband cable and apparatus for cable television applications; and antenna and cable products, base station subsystems, coverage and capacity systems, and network solutions for wireless applications.

Under the deal, CommScope will acquire all of the outstanding shares of Andrew for $15.00 per share, at least 90 percent in cash. Based on CommScope's and Andrew's results for fiscal year 2006, on a pro forma basis, the combined companies would have had sales of approximately $3.8 billion comprised of approximately 35 percent in wireless antenna and cable products; 29 percent in carrier and network solutions; 21 percent in enterprise products; and 15 percent in broadband/cable television solutions. The combined companies' revenues on a geographic basis would have been approximately 57 percent in North America; 24 percent in Europe, the Middle East and Africa; 12 percent in Asia/Pacific Rim; and 7 percent in Latin America. The combined company will have more than 2,200 global patents and pending patent applications and approximately 16,000 employees serving more than 130 countries.

Following the close of the transaction, Andrew will become a wholly-owned subsidiary of CommScope. Frank Drendel will remain Chairman and CEO of CommScope, and CommScope will retain its global headquarters in Hickory, North Carolina. The combined company also plans to maintain its Chicago-area presence, including Andrew's state-of-the-art manufacturing and office facility in Joliet, Illinois.



  • In August 2006, CommScope dropped its bid to acquire Andrew Corporation. A day earlier, Andrew Corporation had rejected CommScope's proposal to acquire all of Andrew's outstanding shares for $9.50 per share in cash.

  • Also in August 2006, Andrew Corporation and ADC Telecommunications mutually agreed to terminate a merger agreement that had been set in May 2006.