France's Vantiva to buy US' CommScope’s Home Networks
Oct 3 (Reuters) - French technology company Vantiva said on Tuesday it struck a deal to buy U.S. network infrastructure provider CommScope's Home Networks division in exchange for a 25% stake in Vantiva.
The deal includes a maximum earnout of $100 million in cash for CommScope contingent on Vantiva achieving EBITDA equal to or exceeding 400 million euros ($418.92 million) in a given fiscal year over the five years after the first full year after closing.
"The acquisition of Home Networks will substantially increase the scale of our business, while also generating synergies, which will significantly strengthen our free cash flow generation potential," Luis Martinez-Amago, CEO of Vantiva, said in a release.
The transaction is currently expected to generate in excess of 100 million euros in pre-tax cash synergies by fiscal year 2026. It is scheduled to close by the end of 2023.
Home Networks provides devices that connect homes to the internet and video set top boxes.
Vantiva, formerly known as Technicolor, is an independent company, which designs and develops products and solutions that connect consumers around the world. ($1 = 0.9548 euros) (Reporting by Michal Aleksandrowicz in Gdansk; Editing by Sharon Singleton)
