HICKORY, N.C., Feb. 3-- PRNewswire / AsiaNet
CommScope, Inc. NYSE: CTV) announced today that it has completed the acquisition of the Connectivity Solutions (ACS) business of Avaya, Inc. (NYSE: AV), except for certain international operations that are expected to be completed later this year. The acquisition was effective January 31, 2004.
The transaction creates a unique combination of global leaders in connectivity solutions for enterprise applications and cable for Hybrid Fiber Coaxial (HFC) applications. The strategic acquisition also expands CommScope's leadership position in the "last mile" of telecommunications.
"We are thrilled to begin a new chapter in the history of industry leaders and telecom pioneers," said Frank M. Drendel, CommScope Chairman and Chief Executive Officer. "We believe this combination creates significant opportunities for synergy and innovation and will provide value to our customers and business partners.
"SYSTIMAX(R) Solutions, our new enterprise connectivity company, is already recognized as the global leader in its field," Drendel added. "We intend to build on its tradition of excellence by bringing complementary technologies and renewed commitment to its business. We are also proud to announce the new CommScope Carrier Solutions(TM) group that will provide cabinets, cable and apparatus solutions to telecommunications service providers."
The total consideration for the ACS business was adjusted to reflect a higher cash payment, fewer shares of CommScope common stock and a lower level of assumed liabilities by CommScope than previously announced. The total purchase price consists of $250 million in cash, subject to post-closing adjustments, and approximately 1.8 million shares of CommScope common stock. At the time that the agreement between CommScope and Avaya was announced on October 27, 2003, those shares were valued at $22.9 million, and at the close of business on January 30, 2004 they were valued at $32.8 million. In addition, CommScope will assume up to $65 million of specified liabilities, primarily related to employee benefits.
The cash portion of the purchase price consists of $150 million from CommScope's existing cash balances and $100 million from borrowing under a new 5-year $185 million senior secured credit facility. The new credit facility, which replaces CommScope's previous credit facility, is comprised of a $75 million term loan and a $110 million revolving credit facility, and was underwritten and arranged by Wachovia Securities. CommScope had approximately $206 million in cash and cash equivalents on its balance sheet as of December 31, 2003. The company plans to release fourth quarter 2003 results on February 19, 2004.
About CommScope
CommScope (NYSE: CTV - http://www.commscope.com) is a world leader in the design and manufacture of "last mile" cable and connectivity solutions for communication networks. We are the global leader in structured cabling systems for business enterprise applications and the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial (HFC) applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions from the central office to the home.
Forward-Looking Statements
Statements in this communication other than historical facts are intended to be forward-looking statements expressing CommScope's current views of future events and financial performance. For a discussion of factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, please refer to CommScope's filings with the Securities and Exchange Commission.
SOURCE: CommScope, Inc.
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Web site: http://www.commscope.com