TE Connectivity has reached a definitive agreement to sell its Broadband Network Solutions (BNS) business unit to CommScope for $3.0 billion. The BNS business, which consists of TE's Telecommunications, Enterprise Networks and Wireless businesses, had revenue of $1.9 billion in fiscal year 2014. CommScope is a telecommunications infrastructure solutions provider for wireless, business enterprise and residential broadband networks.
"Our decision to sell our BNS business reflects our strategy to continue focusing on and expanding our leadership position in the attractive connectivity and sensor markets, with particular emphasis on harsh environment applications," said Tom Lynch, TE Connectivity Chairman and Chief Executive Officer. "These markets represent a $165 billion opportunity for TE and have strong growth rates and attractive profit levels driven by the global trends of a safer, smarter, greener and more connected world.
"Earlier this fiscal year, we established TE as a leader in the high growth sensor market with two key acquisitions," said Lynch. "These acquisitions, in conjunction with the sale of BNS, will result in approximately 90 percent of TE's portfolio focused on providing leading connectivity and sensor solutions.
"We intend to use the majority of the proceeds from the sale for share repurchase," said Lynch. "We also expect to increase organic investments to strengthen our unmatched range of connectivity and sensor solutions and make strategic acquisitions to further expand our customer offering.
"CommScope is an industry leader, and we believe they are the right company to lead our BNS team and business going forward," said Lynch. "Our BNS team has built a successful business, and I want to thank them for their contributions, innovation leadership and commitment to TE over the years. We look forward to working closely with the CommScope team to close the transaction."