Amphenol on Monday announced the purchase of CommScope Holding's connectivity and cable unit in a deal valued at about $10.5 billion. CommScope stock jumped on the news while Amphenol stock rose sightly.
CommScope's unit makes fiber-optic and copper connectivity cables for cable television, residential broadband networks and data centers. North Carolina-based CommScope has been shedding businesses to reduce debt.
"I'm excited to announce this transformational deal that unlocks equity value, returns cash to our shareholders and strengthens our remaining businesses," said CommScope Chief Executive Officer Chuck Treadway, in a news release.
The deal comes amid growing demand for data center capacity driven by artificial intelligence investments.
On the stock market today, CommScope stock surged nearly 56% to 12.14 in early trading. Amphenol stock rose 4% to 108.49.
Connecticut-based Amphenol makes interconnect products, fiber-optic connectors, antennas, sensors and specialty cables.
The sale is expected to close within the first half of 2026.
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