Amphenol, based in Connecticut, is nearing a significant acquisition of CommScope Holding's broadband connectivity and cable unit for approximately $10 billion, including debt.

The broadband connectivity and cable unit is CommScope's largest division by sales and operating income, making it a crucial asset for the company.

This unit is vital for CommScope, contributing two-thirds of its revenue and generating over $724 million in quarterly sales, with a notable 20% year-over-year revenue growth in the first quarter of 2025.

If completed, this acquisition would mark a significant milestone for Amphenol, positioning it as a key player in the AI infrastructure market and opening up long-term value creation opportunities.

As of now, both Amphenol and CommScope have not responded to requests for comments regarding the reported acquisition.

The Wall Street Journal reported on August 3, 2025, that this potential deal could be finalized as soon as today, August 4, 2025, assuming no last-minute complications arise.

CommScope's decision to explore the sale is part of a broader deleveraging strategy aimed at reducing its $7.4 billion long-term debt by divesting non-core assets.

Amphenol's interest in acquiring this unit is driven by the increasing demand for high-speed data transmission, particularly for data centers that require robust fiber-optic solutions.

Investors are optimistic about the acquisition, anticipating benefits such as margin expansion due to strong EBITDA margins of 21.7%, strategic positioning in AI infrastructure, and a competitive edge through proprietary technologies.

The acquisition reflects a larger trend of consolidation in the connectivity sector, as companies seek to enhance their capabilities in the rapidly growing AI infrastructure market.

This potential deal follows Amphenol's previous acquisition of CommScope's outdoor wireless network and distributed antenna systems businesses for $2.1 billion in cash earlier in 2025.

The CCS unit's expertise in fiber connectivity is increasingly critical as AI systems demand more robust connectivity solutions, especially for hyperscale data centers supporting generative AI workloads.