Mergers and Acquistions News
Categories: IT Services & Consulting
October 27th 2010, 17:15PM
CommScope, which said earlier this week it was in merger talks with The Carlyle Group, has confirmed that it will be bought by the global private equity group for approximately $3.9 billion (£2.4 billion).
CommScope, which provides communications infrastructure for businesses in over 130 countries, will become a private company on completion of the deal.
The Carlyle Group, a global asset manager with more than $90.9 billion under management, acquired all outstanding shares in CommScope for $31.50 per share, a premium of around 36 per cent on the Friday stock closing price.
"We are proud to enter into this agreement with Carlyle and believe this transaction is in the best interest[s] of CommScope and our stockholders," said Frank Drendel, chairman of the board and chief executive officer.
However, it is possible that another bid may come in for CommScope, given that the firm may look for superior offers from third parties until December 5th this year.
But according to KeyBanc analyst Anthony Kure, that is unlikely.
"We believe this scenario is unlikely given the absence of any bids thus far, the speed by which this agreement has been reached and the $43 million break-up fee CTV (CommScope) would be obligated to pay if the deal were not executed," he said.
The transaction is expected to close in the first quarter of 2011.
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