The transaction, rumoured earlier this week, has today been approved by the boards of directors at both companies.
BNS’ revenue for the fiscal year 2014 hit $1.9 billion, and CommScope hopes the acquisition will drive profitable growth for the company by enabling its entrance into attractive adjacent markets.
“This transaction has many clear strategic and financial benefits for all of our stakeholders,” said Eddie Edwards, president and CEO at CommScope.
“It creates enhanced scale with a combined, diversified portfolio that we believe is well-positioned to take advantage of opportunities in the marketplace.”
For TE Connectivity, the sale will enable it to concentrate on the connectivity and sensor markets; particularly harsh environment applications.
“These markets represent a $165 billion opportunity for TE,” said Tom Lynch, TE Connectivity chairman and chief executive. “[They] have strong growth rates and attractive profit levels driven by the global trends of a safer, smarter, greener and more connected world.”
The transaction is due to close by the end of 2015, and is subject to consummation of contemplated financing, regulatory approvals and other customer closing conditions.
Upon completion, several members of the TE Connectivity leadership team will join CommScope and Edwards will continue to lead the company.
“We look forward to welcoming the TE Connectivity businesses to CommScope, which will bring top talent, strong customer relationships in growing markets and a robust pipeline of innovations,” Edwards added.
