Allen & Company LLC, Deutsche Bank, J.P. Morgan Securities LLC, and BofA Merrill Lynch are serving as financial advisors to CommScope, and Alston & Bird LLP, Latham & Watkins LLP, Cravath, Swaine & Moore LLP, Pinsent Masons LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as legal counsel. Evercore is serving as financial advisor to ARRIS. Troutman Sanders LLP, Herbert Smith Freehills LLP and Hogan Lovells LLP are serving as legal counsel to ARRIS. Simpson, Thacher & Bartlett LLP is serving as Carlyle’s legal counsel. Debevoise & Plimpton LLP is advising J.P. Morgan Securities LLC.
CommScope (NASDAQ: COMM), a global leader in infrastructure solutions for communications networks, has agreed to acquire ARRIS International plc (NASDAQ: ARRS), a global leader in entertainment and communications solutions, in an all-cash transaction for $31.75 per share, or a total purchase price of approximately $7.4 billion, including the repayment of debt.
In addition, The Carlyle Group, a global alternative asset manager, has reestablished an ownership position in CommScope through a $1 billion minority equity investment as part of CommScope’s financing of the transaction.
The combination of CommScope and ARRIS, on a pro forma basis, would create a company with approximately $11.3 billion in revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $1.8 billion, based on results for the two companies for the 12 months ended September 30, 2018.
The combined company is expected to drive profitable growth in new markets, shape the future of wired and wireless communications, and position the new company to benefit from key industry trends, including network convergence, fiber and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures.
The transaction is not subject to a financing condition. CommScope expects to finance the transaction through a combination of cash on hand, borrowings under existing credit facilities and approximately $6.3 billion of incremental debt for which it has received debt financing commitments from J.P. Morgan Securities LLC, BofA Merrill Lynch and Deutsche Bank Securities Inc.
Alston & Bird advised CommScope with a team led by partners Mark Kelly (Picture), William Snyder, and Scott Ortwein, senior associate Ben Weadon, and associates Dan Rowe and Claudia Golden (Corporate & Business Transactions); partners Mike Stevens and Blake MacKay (Employee Benefits & Executive Compensation); partner John Baron (Tax); partners Ross Barton and Chris Gegg (Intellectual Property); partner Brett Coburn (Labor & Employment); partner John Latham (Securities Litigation); partner Jason Waite (International Trade & Regulatory); partner Jeff Belkin (Government Contracts); partner Maureen Gorsen (Environment, Land Use & Natural Resources); and counsel Helen Christakos (Privacy & Data Security).
Latham & Watkins LLP advised CommScope with a capital markets team led by partners Patrick Shannon and Jason Licht, with associates Christopher Clark, Jessica Lennon, and Faisal Amin in Washington, D.C. Advice was also provided on bank finance matters by partners Jeffrey Chenard and Scott Forchheimer, with associates Keely O’Malley and Brian Howaniec in Washington, D.C.
The Pinsent Masons team was led by London corporate partners Rob Hutchings and Roberta Markovina, supported by senior associates Adam Cain and James Kaye. Eloise Walker and Jeremy Webster provided tax advice.
Troutman Sanders LLP has advised ARRIS International plc with a team including Brinkley Dickerson, Tyler Dempsey, Heather Ducat, Sean Ehni, Tina Bacce, Cody Mathis and Anthony Kennedy; tax attorney Robert Friedman; benefits attorneys Jeff Banish and Constance Brewster; intellectual property attorneys Jim Schutz and Brennan Carmody; labor and employment attorney Ashley Hager; and finance attorney Hazen Dempster.
Herbert Smith Freehills has advised ARRIS International plc with a team including corporate partners Gavin Davies, Alex Kay and Caroline Rae, supported by associates Brian O’Malley, Rich Woods and Sophie Thompson. Isaac Zailer and Lucy Rosen assisted on tax aspects.
Debevoise & Plimpton LLP advised J.P. Morgan Securities LLC with a team including Andrew L. Bab and John R. Love.
Involved fees earner: Gavin Davies – Herbert Smith Freehills; Alex Kay – Herbert Smith Freehills; Caroline Rae – Herbert Smith Freehills; Brian O’Malley – Herbert Smith Freehills; Richard Woods – Herbert Smith Freehills; Sophie Thompson – Herbert Smith Freehills; Isaac Zailer – Herbert Smith Freehills; Lucy Rosen – Herbert Smith Freehills; Brinkley Dickerson Jr. – Troutman Sanders; Tyler Dempsey – Troutman Sanders; Heather Ducat – Troutman Sanders; Sean Ehni – Troutman Sanders; Tina Bacce – Troutman Sanders; Robert Friedman – Troutman Sanders; Jeffery Banish – Troutman Sanders; Constance Brewster – Troutman Sanders; Ashley Hager – Troutman Sanders; James Schutz – Troutman Sanders; Brennan Carmody – Troutman Sanders; Hazen Dempster – Troutman Sanders; Mark Kelly – Alston & Bird LLP; William Snyder – Alston & Bird LLP; William Scott Ortwein – Alston & Bird LLP; Benjamin Weadon – Alston & Bird LLP; Daniel Rowe – Alston & Bird LLP; Claudia Golden – Alston & Bird LLP; Michael Stevens – Alston & Bird LLP; Blake MacKay – Alston & Bird LLP; Brett Coburn – Alston & Bird LLP; John Baron – Alston & Bird LLP; Ross Barton – Alston & Bird LLP; Christopher Gegg – Alston & Bird LLP; Jason Waite – Alston & Bird LLP; Jeffrey Belkin – Alston & Bird LLP; Maureen Gorsen – Alston & Bird LLP; Helen Christakos – Alston & Bird LLP; John Latham – Alston & Bird LLP; Andrew Bab – Debevoise & Plimpton; John Love – Debevoise & Plimpton; Rob Hutchings – Pinsent Masons; Roberta Markovina – Pinsent Masons; Adam Cain – Pinsent Masons; James Kaye – Pinsent Masons; Eloise Walker – Pinsent Masons; Jeremy Webster – Pinsent Masons; Patrick Shannon – Latham & Watkins; Jason Licht – Latham & Watkins; Christopher Clark – Latham & Watkins; Jessica Lennon – Latham & Watkins; Faisal Amin – Latham & Watkins; Jeffrey Chenard – Latham & Watkins; Scott Forchheimer – Latham & Watkins; Keely O’Malley – Latham & Watkins; Brian Howaniec – Latham & Watkins;