CommScope has completed its $7.4 billion acquisition of Arris.
Eddie Edward, president and CEO of Hickory, N.C.-based CommScope, will lead the combined company that touts around 30,000 workers, 15,000 patents and $850 million in annual R&D spending.
Bruce McClelland, formerly CEO of Atlanta-based Arris, will now assume the role of chief operating officer of CommScope. The company hasn’t publicly discussed any layoffs. But it did say it hopes to experience $150 million in cost synergies in year three of the transaction.
Private equity firm The Carlyle Group will become a minority owner of the combined company with its $1 billion equity investment.
The two combines had combined pro forma revenue of $11.3 billion in 2018.
Announcing the deal in November, the telecom vendors pitched a merger based on mutual interests in wired/wireless convergence associated with 5G, as well as applications like CBRS.
“This is a major milestone in the evolution of these two great companies and a significant moment for our industry,” Edwards said in a statement. “With the completion of this exciting transaction, we are creating a new CommScope that will help shape communications connectivity and networks of the future with greater technology, solutions and employee talent. We are committed to building on our well-established track record in prior transactions of meeting or exceeding our synergy targets and generating significant value for shareholders.”
Added McClelland: “Together, we combine great employee talent and experience, an impressive record of innovation and industry firsts, and a sharp focus on creating a world-class customer experience. The entire Arris team and I are eager to get started and help make CommScope one of the top names in technology.”
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!