TLDR
- Amphenol acquired CommScope’s Connectivity and Cable Solutions business for $10.5 billion in cash
- CommScope stock jumped 80% on the news, reaching three-year highs
- The deal focuses on fiber optic products for AI and data center applications
- CommScope plans to use proceeds to pay down debt and potentially issue special dividend to shareholders
- Transaction expected to close in first half of 2026
CommScope Holding Company stock erupted Monday, climbing 80% after announcing the sale of its Connectivity and Cable Solutions business to Amphenol Corporation for $10.5 billion in cash. The deal marks one of the largest transactions in the connectivity space this year.

Amphenol agreed to purchase the CCS unit to expand its reach in the rapidly growing IT datacom market. The acquisition specifically targets fiber optic interconnect products used in artificial intelligence and data center applications.
CommScope shares hit their highest level in three years following the announcement. The stock has now gained 172% year-to-date and 286% over the past 12 months.
The Connecticut-based Amphenol said the CCS business will strengthen its interconnect product capabilities. CEO R. Adam Norwitt noted that CCS’s fiber optic solutions for AI applications complement Amphenol’s existing product lineup.
Strategic Focus on AI Infrastructure
The deal reflects growing demand for connectivity solutions in AI and data center markets. CCS provides fiber optic interconnect products that support high-speed data transmission required for AI workloads.
Amphenol expects the acquisition to generate approximately $3.6 billion in annual sales. The company projects EBITDA margins of 26% from the CCS operations.
The transaction is expected to boost Amphenol’s earnings per share in the first full year after completion. Amphenol stock gained 3% Monday and trades 55% higher year-to-date.
CommScope plans to use the $10 billion in net proceeds strategically. The company will first pay off its net debt and redeem all preferred equity.
After addressing its debt obligations, CommScope intends to add modest leverage on its remaining operations. Any excess funds will be returned to shareholders through a special dividend.
Transaction Timeline and Market Response
The deal is structured as an all-cash transaction valued at $10.5 billion. Both companies expect the sale to close in the first half of 2026.
CommScope stock traded 2.45 million shares Monday morning, below its three-month daily average of 5.22 million shares. The lower volume suggests institutional rather than retail investor activity drove the price movement.

Wall Street analysts maintain a Hold rating on CommScope stock. The consensus price target sits at $7.50, representing potential upside from current levels.
Amphenol shares reached an all-time high following the announcement. The company has positioned itself as a key supplier for next-generation connectivity infrastructure.
The CCS business will help Amphenol diversify its fiber optic and interconnect product portfolio. The unit serves both communications networks and industrial markets.
CommScope’s remaining operations will focus on its core infrastructure and network solutions businesses. The company has not disclosed specific plans for these divisions following the transaction.
The acquisition represents Amphenol’s largest deal in recent years. The company continues to pursue growth through strategic acquisitions in high-growth technology sectors.
Amphenol anticipates the CCS integration will be accretive to earnings in the first year after closing.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support