Proactive Investor's  Instablog

Infrastructure solutions for communications networks provider CommScope, Inc (NYSE:CTV) is to be taken private through a takeover offer from private equity firm The Carlyle Group.

The deal, which is  expected to close in the first quarter of 2011, values CommScope at approximately US$3.9 billion, or US$31.50 per share.  The offer from Washington D.C. headquartered Carlyle represents a 36% premium to CommScope’s share price last Friday.

“We are proud to enter into this agreement with Carlyle and believe this transaction is in the best interest of CommScope and our stockholders,” said Frank Drendel, chairman of the board and chief executive officer, CommScope.  “Further, we are pleased that this transaction appropriately recognizes the value of CommScope’s customer relationships, technology and solutions, financial management and global market position, while providing our stockholders with a significant cash premium for their investment.

Founded in North Carolina, CommScope has more than 13,000 employees who create infrastructure solutions for communications networks in more than 100 countries.

CommScope reported sales of $821.9 million and net income of $50.6 million, or $0.49 of earnings per diluted share, for the quarter ended September 30, 2010.

The offer from Carlyle has fully committed financing and is not subject to any condition with regard to the financing.

Under the merger agreement, CommScope may solicit superior proposals from third parties for a period of 40 calendar days continuing through December 5, 2010.