International. CommScope has agreed to acquire Cable Exchange, a private fast-connect provider of fiber optic and copper assemblies for data, voice and video communications.
Cable Exchange, headquartered in Santa Ana, California, manufactures a variety of fiber optic and copper cables, trunk cables and other related products, used in high-capacity data centers and other business enterprise applications. The company, founded in 1986, specializes in fast delivery times for its infrastructure products to customers at its two U.S. manufacturing centers, located in Santa Ana, California and Pineville, North Carolina.
This acquisition, highly complementary for the two companies, will augment CommScope's capabilities in supporting the growing market for high-capacity data centers, Multi-Tenant Data Centers and Hyperscale Data Centers operated by the world's largest technology and retail companies. As information to the user and commerce flows through networks, operators are rapidly deploying larger and more complex data centers to support traffic growth and data transmission.
"We are pleased to further expand our capabilities in the data center market with Cable Exchange, a trusted and respected provider of critical network infrastructure with strong customer relationships," said Eddie Edwards, President and CEO of CommScope. "In addition, we believe the people, products and performance of Cable Exchange are a great partner for CommScope."
Cable Exchange's leadership team and employees will join CommScope upon completion of the transaction. Cable Exchange will operate as a standalone business within CommScope's Connectivity Solutions segment.
"While the overall business environment remains challenging, we believe Cable Exchange's leadership in the attractive and rapidly changing industry will complement our efforts to address this important market opportunity," said Eddie Edwards.
Joey Hynes, President of Cable Exchange, added: "We are delighted to partner with an industry leader like CommScope. We look forward to leveraging the full capabilities of our teams, thereby serving the growing data center market."
The acquisition is expected to be completed within the next 60 days, subject to customary closing conditions, including receipt of regulatory approvals. CommScope intends to fund the acquisition with available cash.
*Additional terms of the agreement were not disclosed and are not available.
