CommScope is selling two product lines to Adtran for an undisclosed sum. Adtran, a provider of cable networking equipment, will buy CommScope’s active Ethernet passive optical network product platforms, as well as CommScope’s radio frequency over glass product line. The transaction is not expected to have a material impact on CommScope’s revenue.
“We believe the revenue contribution and financial impact will be indiscernible on CommScope’s roughly $5 billion in annual sales,” said analyst Simon Leopold of Raymond James.
“CommScope will continue providing passive PON solutions to the [multiple-system operator] and service provider market, including its optical closures, optical terminals and drops, and other passive accessories,” said Jim Hughes, CommScope’s VP of North American MSO sales. “CommScope has a strong commitment to helping MSO and service providers evolve their networks. We believe Adtran’s acquisition of these active fiber product lines will provide existing customers and prospects with the research and development, professional services and customer support structure they need as they move their broadband networks forward.”
The sale comes in the wake of two major acquisitions made by CommScope within the last two years. Last year the company spent $3 billion on TE Connectivity’s telecom, wireless and enterprise business units. Less than two weeks after that deal closed, CommScope announced plans to buy small cell vendor Airvana.
The two acquisitions announced last year underscore CommScope’s commitment to small cells and distributed antenna systems, two areas expected to experience growth as mobile operators densify their networks and enterprise customers prioritize mobile connectivity. This week CommScope announced the first installation of its ION-E distributed antenna system platform in a health care facility. Memorial Medical Center in Springfield, Illinois, worked with CommScope and RF Connect to provision a distributed antenna system that supports all four major carriers.
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