Carlyle pledges $1B to CommScope for telecom blockbuster
November 9, 2018
The Carlyle Group has agreed to pay $1 billion for a 16% stake in CommScope, a publicly traded provider of communication infrastructure. In turn, CommScope has agreed to use the cash to help finance a separate acquisition of telecom equipment manufacturer Arris for $31.75 per share, or some $7.4 billion including the repayment of Arris' debt.
The companies expect to create a combined business with some $11.3 billion in revenue and $1.3 billion in EBITDA for the 12 months that ended September 30. Carlyle is a previous investor in CommScope, having acquired the company in 2011 before taking it public in 2013 and fully exiting in 2016.
In an unrelated move, Carlyle has invested an undisclosed amount in iCapital Network, the creator of a fintech platform for asset managers. Carlyle will also start using iCapital's technology to manage its own funds. iCapital has already received backing from some of the biggest names in finance, with Blackstone investing in the business last week.