HICKORY, N.C.--(BUSINESS WIRE)--CommScope, a global leader in infrastructure solutions for communications networks, has agreed to acquire Cable Exchange, a privately held quick-turn supplier of fiber optic and copper assemblies for data, voice and video communications.
Cable Exchange, headquartered in Santa Ana, Calif., manufactures a variety of fiber optic and copper cables, trunks and related products used in high-capacity data centers and other business enterprise applications. The company, founded in 1986, specializes in quick-turn delivery of its infrastructure products to customers from its two U.S. manufacturing centers located in Santa Ana, Calif. and Pineville, N.C.
This highly complementary acquisition will deepen CommScope’s capabilities in supporting the growing market for high-capacity, multi-tenant data centers and hyperscale data centers operated by the world’s largest technology and retail companies. As more user-driven information and commerce flows through networks, operators are quickly deploying larger and more complex data centers to support growth in traffic and transactions.
“We are pleased to further expand our capabilities in the data center market with Cable Exchange, a trusted and respected provider of critical network infrastructure with strong customer relationships,” said CommScope President and Chief Executive Officer Eddie Edwards. “Further, we believe the people, products and performance of Cable Exchange are a great match for CommScope.
“While the overall business environment remains challenging, we believe Cable Exchange’s leadership in the attractive quick-turn industry will complement our efforts in addressing this important market opportunity,” Edwards added.
The leadership team and employees of Cable Exchange will join CommScope upon completion of the transaction. Cable Exchange will operate as a stand-alone business within CommScope’s Connectivity Solutions segment.
“We are thrilled to partner with an industry leader like CommScope,” said Cable Exchange President Joey Hynes. “We look forward to building upon our teams’ capabilities to serve the growing data center market.”
The acquisition is expected to be completed within the next 60 days, subject to customary closing conditions, including receipt of regulatory approvals. CommScope intends to fund the acquisition with cash on hand. Additional terms of the deal were not disclosed.
CommScope (NASDAQ: COMM) helps companies around the world design, build and manage their wired and wireless networks. Our vast portfolio of network infrastructure includes some of the world’s most robust and innovative wireless and fiber optic solutions. Our talented and experienced global team is driven to help customers increase bandwidth; maximize existing capacity; improve network performance and availability; increase energy efficiency; and simplify technology migration. You will find our solutions in the largest buildings, venues and outdoor spaces; in data centers and buildings of all shapes, sizes and complexity; at wireless cell sites; in telecom central offices and cable headends; in FTTx deployments; and in airports, trains, and tunnels. Vital networks around the world run on CommScope solutions.
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. Factors that could cause actual results to differ materially from those in the forward-looking statements include the risk that CommScope may fail to realize anticipated benefits of the acquisition or that such benefits may take longer to realize than expected; challenges and uncertainties affecting the telecommunications industry; the potential impact of announcement or consummation of the proposed acquisition on relationships with third parties, including customers, employees and competitors; and the ability to attract new customers and retain existing customers in the manner anticipated. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the businesses of CommScope, including those described in CommScope’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed from time to time with the Securities and Exchange Commission. 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.