CommScope (Nasdaq: COMM) is betting $3 billion that it can diversify and expand its communications gear and cabling business by acquiring the telecom, enterprise and wireless businesses of TE Connectivity. Its CEO describes the deal as “transformative.”

The deal, which already has been approved by the boards of both companies, is designed to “accelerate CommScope’s strategy to drive profitable growth by entering into attractive adjacent markets and to broaden its position as a leading communications infrastructure provider,” the company said.

CEO Eddie Edwards said the acquisition adds to CommScope’s scale. 

“This is an important and transformative acquisition for CommScope, bringing together complementary geographic and customer coverage, products and technologies for the benefit of our stockholders, customers and employees,” he said in a statement.

“This transaction has many clear strategic and financial benefits for all of our stakeholders. It creates enhanced scale with a combined, diversified portfolio that we believe is well-positioned to take advantage of opportunities in the marketplace.

The businesses, made up of 65 facilities and approximately 10,000 employees, had annual revenue of about $1.9 billion in fiscal 2014. It has a strong presence in Europe, the Middle East, Africa and the Asia-Pacific region.

TE Chairman and CEO Tom Lynch said the sale will allow the company to focus on connectivity and sensor markets, “with particular emphasis on harsh environment applications. The deal does not include subsea communications or data communications businesses owned by TE Connectivity Ltd.

TE Connectivity will use proceeds from the sale for stock buybacks, as well as acquisitions and other investments.

CommScope expects more than $150 million in annual savings starting in the third year after the transaction’s closing.

CommScope anticipates financing the transaction with cash on hand and up to $3 billion of incremental debt.

The deal is targeted to close by year’s end.

CommScope returned to public markets with an IPO worth nearly $570 million in 2013.