Commscope shares surged nearly 70% in early trading on Monday after Amphenol announced it would acquire the company’s Connectivity and Cable Solutions business for $10.5 billion in cash.
The deal will expand Amphenol’s presence in the data communications market, particularly in areas linked to artificial intelligence and advanced data centre infrastructure.
Amphenol said the acquisition will add a range of fibre optic interconnect products to its portfolio, strengthening its offering for customers in fast-growing technology segments.
The company expects the acquired business to generate $3.6 billion in annual sales with operating margins of 26%, and to boost earnings per share in the first year after closing, which is targeted for the first half of next year.
Commscope shares jumped $5.38 to $13.18.