The announcement of an asset sale has caused shares of CommScope Holding Company, Inc. (NASDAQ: COMM) to rise significantly in today’s current market trading. As of thye latest current-market check, COMM stock was trading 14.66% higher at $1.96.
Financial and Strategic Implications
A formal agreement has been reached by CommScope (COMM) to sell its Outdoor Wireless Networks (OWN) segment to Amphenol Corporation, together with the Distributed Antenna Systems (DAS) business unit of its Networking, Intelligent Cellular & Security Solutions division. As part of the agreement, CommScope will receive approximately USD $2.1 billion in cash from Amphenol upon the transaction’s closure.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
Under Amphenol’s leadership, the OWN and DAS businesses are expected to continue performing robustly. The OWN segment provides wireless infrastructure for mobile networks, encompassing macro and small cell site solutions. The DAS business offers solutions for cellular infrastructure within venues, campuses, and enterprises.
Technological Advancements and Future Prospects
On the technological front, CommScope recently launched Software Release 13 for the E6000 Converged Edge Router (CER). This release offers operators a flexible upgrade path, leveraging existing or new units as they progress toward 10G capabilities. The E6000 CER, recognized as the cable industry’s most widely-deployed Converged Cable Access Platform (CCAP), continues to support rapidly-evolving cable networks.
This enhancement underscores CommScope’s ability to enhance the E6000 CER’s industry-leading features, honed over years of field service, to support advanced hybrid fiber-coax (HFC) cable access network technologies. By providing operational support for these cutting-edge technologies, customers can extend the lifespan of their current E6000 deployments.
The upgrade to E6000 CER Software Release 13 allows Multi-Service Operators (MSOs) to introduce new services over their existing assets, offering faster speeds to subscribers, increasing average revenue per user (ARPU), and effectively fending off competition in a capital-efficient manner.
Importantly, MSOs planning to transition to Distributed Access Architecture (DAA) and DOCSIS 4.0 now have viable options. Many features in the E6000 CER, combined with the Software Release 13 upgrades, will be available on CommScope’s Virtualized CCAP Core (vCore) solution.
