CommScope Sells Wireless Units for $2.1B

By Bobby Samwell • Wednesday, February 05 15:19 • Permanent Link

CommScope Completes Sale of Outdoor Wireless Networks and Distributed Antenna Systems Business

CommScope Holding Company, Inc. has recently completed the sale of its Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) business unit to Amphenol Corporation for $2.1 billion in cash. As a result of this transaction, the company has released unaudited pro forma condensed consolidated financial statements to provide an illustrative view of its financial position and results of operations.

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2024, shows significant changes following the sale. Cash and cash equivalents increased from $392.1 million to $695.6 million after the transaction, reflecting the influx of cash from the sale. Additionally, the company's current assets decreased from $3,423.9 million to $2,381.9 million due to the removal of current assets held for sale.

On the liabilities side, the current portion of long-term debt decreased from $1,306.6 million to $0 million, indicating a reduction in short-term debt obligations following the sale. Long-term debt also decreased from $7,966.4 million to $6,174.5 million, reflecting the company's improved debt position after the transaction.

The unaudited pro forma condensed consolidated statement of operations for the nine months ended September 30, 2024, and for the year ended December 31, 2023, also reflects the impact of the sale. Net sales decreased from $3,036.7 million to $0 million in the pro forma statement for the nine months ended September 30, 2024, due to the removal of the discontinued operations of the OWN segment and DAS business unit. Additionally, operating expenses saw a decrease, with selling, general and administrative expenses reducing from $873.3 million to $783.0 million in the pro forma statement for the year ended December 31, 2023.

These unaudited pro forma condensed consolidated financial statements provide insight into the changes in CommScope's financial position and results of operations following the sale of its OWN segment and DAS business unit. The company's improved cash position and reduced debt obligations are notable outcomes of the transaction, impacting its overall financial standing. Following these announcements, the company's shares moved -1.3%, and are now trading at a price of $4.96. For the full picture, make sure to review CommScope's 8-K report.

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