CommScope Announces Plans to Sell Home Networks Business to Vantiva
03 Octobre 2023 - 2:30PM
Business Wire
CommScope (NASDAQ: COMM) a global leader in network
connectivity, announced today it plans to sell its Home Networks
Business to Vantiva (Euronext Paris: VANTI), formerly known as
Technicolor. CommScope first announced it intended to separate its
Home Networks Business in April 2021 as part of its CommScope NEXT
initiative to drive portfolio optimization. After assessing various
strategic alternatives for the Home Networks business, CommScope
determined that Vantiva is the best partner for this business.
Under the terms of the transaction, which is expected to be
completed in Q4 2023, CommScope will receive:
- a 25% stake in Vantiva at closing; and
- an earnout of up to $100 million, contingent upon Vantiva
achieving EBITDA equal to or exceeding €400M in a given year over a
5-year period and meeting certain other thresholds.
This transaction structure allows CommScope to capture future
upside from significant synergy value creation. CommScope will also
have one representative join Vantiva’s Board of Directors,
highlighting its commitment to Vantiva’s strategy.
“For the past 2 years, we have methodically and thoughtfully
considered the strategic alternatives for our Home Networks
business which would provide the highest value for our shareholders
and the best partner to support our customers. In Vantiva, we are
confident that we have found the right buyer. Our Home Networks
business is currently in a challenging environment, and by
combining these two businesses we believe it provides the best
opportunity for future success. Additionally, both Home Networks
and Vantiva share a similar vision, and value innovation, customer
service, and developing products of the highest quality,” stated
Chuck Treadway, CEO, CommScope. “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.”
“This planned strategic acquisition represents a unique
transformative opportunity for Vantiva,” said Luis Martinez-Amago,
CEO of Vantiva. “It will enable us to reinforce Vantiva’s Connected
Home operations, accelerate our innovation roadmap and expand into
new markets through additional commercial partnerships. From a
financial perspective, the acquisition of Home Networks will
substantially increase the scale of our business while also
generating synergies, that will significantly strengthen our free
cash flow generation potential. This will result in a
value-enhancing transaction benefiting all stakeholders, including
end-consumers, customers, employees, shareholders and lenders.
Subject to various approvals, we will be thrilled to welcome
CommScope as a shareholder in Vantiva and our new colleagues
joining us from CommScope Home Networks.”
CommScope’s Home Networks is currently a global leader in
connected home devices, software, and services; it provides
reliable, secure, next-generation home networking solutions that
are sustainably sourced to customers. With over 300 million
connected home devices delivered worldwide, Home Networks leverages
decades of experience and expertise to assist partners in providing
innovation, value, and quality to accelerate the adoption of
advanced home services. Vantiva is a global technology leader in
designing, developing and supplying innovative products and
solutions that connect consumers around the world to the content
and services they love – whether at home, at work or in other smart
spaces.
CommScope has granted Vantiva a binding call option to acquire
the Home Networks business so as to permit Vantiva’s works council
to be informed and consulted prior to the exercise of the option as
is required in France. We expect Vantiva to exercise the call
option upon completion of the consultation period.
The transaction is subject to the receipt of required regulatory
approvals and approval by Vantiva shareholders.
Advisors
Evercore is acting as financial advisor to CommScope. Alston
& Bird and De Pardieu Brocas Maffei are acting as legal
advisors to CommScope.
CommScope and the CommScope logo are registered trademarks of
CommScope and/or its affiliates in the U.S. and other countries.
For additional trademark information see
https://www.commscope.com/trademarks. All other product names,
trademarks and registered trademarks are property of their
respective owners.
About CommScope:
CommScope (NASDAQ: COMM) is pushing the boundaries of technology
to create the world’s most advanced wired and wireless networks.
Our global team of employees, innovators and technologists empower
customers to anticipate what’s next and invent what’s possible.
Discover more at www.commscope.com.
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This press release includes forward-looking statements that are
based on information currently available to management,
management’s beliefs, as well as on a number of assumptions
concerning future events. Forward-looking statements are not a
guarantee of performance and are subject to a number of
uncertainties and other factors, which could cause the actual
results to differ materially from those currently expected. In
providing forward-looking statements, the company does not intend,
and is not undertaking any obligation or duty, to update these
statements as a result of new information, future events or
otherwise.
Source: CommScope
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version on businesswire.com: https://www.businesswire.com/news/home/20231003026224/en/
News Media Contact: Luke Hamer Luke.Hamer@commscope.com
Financial Contact: Massimo Disabato, CommScope
Massimo.disabato@commscope.com
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