By Tess Stynes
TE Connectivity Ltd. agreed to sell most of its business that
makes equipment for telecommunications and data networks to
CommScope Holding Co. for about $3 billion.
The business for sale, known as network solutions, is one of the
company's four divisions. It had revenue of $1.9 billion during the
company's latest business year, which ended in September.
TE Connectivity said it expects the deal to close by the end of
2015.
On Monday, The Wall Street Journal reported that the company was
close to making the deal.
The Journal reported that the deal doesn't include the
networking division's subsea fiber-optics business, which is used
by telecom and oil and gas customers and has a big share of its
market.
In October, TE Connectivity Chairman and CEO Tom Lynch
reiterated that the subsea market has been weak for the past two
years, but was going into a strong cycle.
TE Connectivity is a maker of connectivity and sensor products
used by telecom companies as well as by automotive, aerospace and
energy companies, among others.
In the latest quarter, revenue growth at the transportation and
industrial segments again offset declines in its network and
consumer segments.
The electronic-component maker also expanded its share-buyback
program by $3 billion.
For the quarter ending in March, the company forecast per-share
earnings of 98 cents to $1.02 and revenue of $3.55 billion to $3.65
billion. Analysts polled by Thomson Reuters expected per-share
profit of $1.02 and revenue of $3.68 billion.
The company, which provides electronic connection products for
markets including automotive, energy, broadband and consumer
products, in October completed its $1.4 billion acquisition of
Measurement Specialties, a move that expanded its portfolio of
sensor technology.
For the period ended Dec. 26, TE Connectivity reported a profit
of $472 million, or $1.14 a share, up from $353 million, or 84
cents a share, a year earlier.
Revenue increased 4.2% to $3.45 billion.
The company had forecast per-share earnings of 88 cents to 92
cents and net sales of $3.46 billion to $3.56 billion.
Michael Calia contributed to this article.
Write to Tess Stynes at tess.stynes@wsj.com
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