CommScope shares slip on news it’s buying rival for $5.6B

HICKORY, N.C. – CommScope is close to a deal to buy Arris for some $5.6 billion, according to CNBC.

Both firms are telecommunications infrastructure gear providers.

As of early Wednesday, no deal has been announced. The news sent CommScope (Nasdaq: COMM) shares down 5 percent in after-hours trading. The company is scheduled to report its latest earnings on Thursday. Shares had closed at $24.76, up a fraction.

In late-morning trading, shares were down some 2 percent.

CommScope would pay some $31 a share in an all-cash deal, sources told CNBC on Tuesday.

“A deal would give CommScope more scale with a more diversified product base, while it would provide an exit for Arris as fewer customers watch traditional TV from set-top boxes, a major part of its business,” CNBC reported.

The deal also basically double the market capitalization of CommScope to some $10 billion, the network said.

CommScope is based in Hickory.