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CommScope completes Home Networks divestiture to Vantiva
Wed, 10th Jan 2024

CommScope has announced the successful completion of its Home Networks Business divestiture to Vantiva. The finalisation of the transaction was disclosed on 10 January 2024, following the definitive agreement signing that took place on 3 October 2023. CommScope foresees that this divestiture will have minimal effects on its full-year adjusted EBITDA. The company will offer further information regarding the impact of this deal on its fiscal year 2024 outlook during the next quarterly earnings call.

The decision to divest the Home Networks Business to Vantiva, formerly Technicolor, has been part of CommScope's continued portfolio enhancement efforts as part of its CommScope NEXT initiative. The transaction details were disclosed in an official statement, with the completion expected in the fourth quarter of 2023. The divestiture agreement terms include CommScope acquiring a 25% stake in Vantiva at the close of the transaction. Additionally, there is an earnout potential of up to $100 million for CommScope, contingent on Vantiva achieving or surpassing a set EBITDA within a specified timeframe, along with meeting certain other thresholds.

The agreement also stipulates CommScope will put forward a representative to join Vantiva's Board of Directors, signifying its commitment to Vantiva's strategic vision. CommScope CEO Chuck Treadway affirmed his confidence in this decision, stating, "We have methodically and thoughtfully considered the strategic alternatives for our Home Networks business, which would provide the highest value for our shareholders and the best partner to support our customers. In Vantiva, we are confident that we have found the right buyer."

Treadway further added that the Home Networks business is currently navigating a challenging environment. He believes that uniting these two businesses provides "the best opportunity for future success." Both CommScope and Vantiva share a similar vision, valuing innovation, outstanding customer service, and high-quality product development.

Luis Martinez-Amago, Vantiva's CEO, agreed with these sentiments, proclaiming, "This planned strategic acquisition represents a unique transformative opportunity for Vantiva." He noted that the move will "reinforce Vantiva's Connected Home operations, accelerate our innovation roadmap and expand into new markets through additional commercial partnerships." Furthermore, he stated that from a financial perspective, the Home Networks acquisition will significantly amplify their business scale while simultaneously generating synergies and considerably strengthening their free cash flow generation potential.

The Home Networks division of CommScope is a globally recognised leader in connected home devices, software, and service provision, offering sustainable, secure, and advanced home networking solutions. Vantiva, in contrast, is a global technology leader that specialises in developing, designing, and supplying innovative products and solutions to connect consumers worldwide to their desired content and services.