Hickory-based cable maker CommScope has agreed to acquire Cable Exchange for an undisclosed amount.
The deal is expected to be completed within 60 days, subject to regulatory approvals. The company intends to fund the acquisition with cash on hand.
CommScope is best known as a cable maker, but a significant part of the company’s revenue now comes from wireless infrastructure and services. The company teamed with Carolina Panthers and provided the equipment and the technical support for the Bank of America Stadium’s wireless network. It went public in 2013.
Cable Exchange manufactures cables, trunks and related products used in technology and business sectors. The Santa Ana, Calif.-based company has two manufacturing sites located in Santa Ana and Pineville.
“While the overall business environment remains challenging, we believe Cable Exchange’s leadership in the attractive quick-turn industry will complement our efforts in addressing this important market opportunity,” said Eddie Edwards, CommScope President and CEO, in a statement.
Upon completion of the transaction, Cable Exchange will keep its name and operate as a stand-alone business in CommScope’s connectivity solutions department.
“We are thrilled to partner with an industry leader like CommScope,” said Joey Hynes, President of Cable Exchange, in a statement. “We look forward to building upon our teams’ capabilities to serve the growing data center market.”
CommScope’s share prices stood at $35.15 Wednesday morning, down 7.5 percent. First-quarter 2017 sales were $1.14 billion, unchanged from last year’s, according to its financial report.
The company plans to release its second quarter 2017 financial results on Thursday, August 3.
Wei Zhou: 704-358-5240