Latest News

CommScope To Acquire Andrew In $2.6 Billion Deal

By | June 28, 2007

      After being rebuffed nearly a year ago, CommScope Inc. has signed an agreement to acquire Andrew Corp., including Andrew’s satellite communications group, the companies announced June 27.

      “We believe that the combination of Andrew and CommScope creates a strong company with long-term advantages for our customers and employees,” said Ralph Faison, president and CEO of Andrew. “Our two companies fit together strategically with leading complementary product offerings and geographical strengths.”

      CommScope, of Hickory, N.C., will acquire all outstanding shares of Winchester, Ill.-based Andrew for $15 apiece, valuing the deal at about $2.6 billion. The price is a 53 percent increase over a $1.7 billion offer Andrew rejected in August, when Andrew also terminated an agreement to merge with ADC Telecommunications Inc.

      In May, Andrew unveiled new plans to sell its satellite communications business, which manufactures satellite antenna systems and electronics for home, commercial and military markets and accounted for 6 percent of the company’s revenues of $503 million in the 2007 second quarter.

      “During the last two quarters,” Faison said in May, “we made meaningful progress in rationalizing and right-sizing this  business, and believe that we have positioned it for improved performance in the future.”

      The combined revenues of Andrew and CommScope in fiscal year 2006 totaled about $3.8 billion, and the company expects to generate annual cost savings of about $90 million to $100 million in the second full year after completion of the transaction, pending approval by the U.S. government. The companies expect the deal to close by the end of 2007, with Andrew then operating as a wholly owned subsidiary.

      Click on a tab to select how you'd like to leave your comment

      Leave a Reply