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Investing.com -- Amphenol (NYSE:APH) stock jumped 4.5% in premarket trading after the company announced it will acquire CommScope’s Connectivity and Cable Solutions segment for approximately $10.5 billion in an all-cash transaction.
The deal, which is subject to CommScope shareholder approval, is expected to close within the first half of 2026. CommScope anticipates receiving net proceeds of approximately $10 billion after taxes and transaction-related expenses.
This strategic acquisition represents a significant expansion for Amphenol, a global provider of high-technology interconnect, sensor and antenna solutions. The purchase of CommScope’s Connectivity and Cable Solutions business will strengthen Amphenol’s position in the communications infrastructure market.
The transaction comes as companies in the connectivity sector look to consolidate operations and expand their product portfolios to meet growing demand for advanced communications infrastructure solutions.
CommScope, which will be divesting a major segment of its business through this deal, will use the substantial proceeds to reshape its financial position and potentially refocus on its remaining business segments.
Market participants responded positively to the announcement, as reflected in Amphenol’s premarket stock movement, suggesting investors view the acquisition as value-enhancing for the company.
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