France's Vantiva to buy CommScope’s Home Networks (updated)

Vantiva SA

03/10/2023 09:02

(Repeats to add media identification slug)
       Oct 3 (Reuters) - French technology company Vantiva
 VANTI.PA  said on Tuesday it struck a deal to buy U.S. network
infrastructure provider CommScope's  COMM.O  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. 
    Shares in Vantiva were up by 30% at 0740 GMT.  
    "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)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))