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CommScope to Buy Cable Exchange


July 21, 2017

CommScope is expanding its hyperscale and multi-tenant data center product portfolio through the acquisition of Cable Exchange. Terms of the deal were not disclosed.

The acquirer is a leading communications network infrastructure solutions provider. Cable Exchange is a privately held supplier of copper and fiber optic assemblies.

Following the close of the deal, which is expected within 60 days of the July 12 announcement, Cable Exchange will operate as a stand-alone business of CommScope’s Connectivity Solutions section. And the Cable Exchange leadership and the rest of the team are expected to come along for the ride.

Cable Exchange, which was established in 1986, is based in Santa Ana, Calif. The company has manufacturing centers both there and in Pineville, N.C. CommScope is a public company traded on the Nasdaq under the symbol COMM. IT helps companies design, build, and manage wired and wireless networks.

“We are pleased to further expand our capabilities in the data center market with Cable Exchange, a trusted and respected provider of critical network infrastructure with strong customer relationships,” said CommScope President and Chief Executive Officer Eddie Edwards. “Further, we believe the people, products and performance of Cable Exchange are a great match for CommScope. 

“While the overall business environment remains challenging, we believe Cable Exchange’s leadership in the attractive quick-turn industry will complement our efforts in addressing this important market opportunity,” he added.

Internal data center traffic is expected to grow threefold over the next five years, driven in part by the Internet of Things, which will include 30 billion devices by 2020. That said, as CommScope’s Ehab Kanary recently blogged, “enterprise data center bandwidth is at risk of being overloaded in the near future.”

That’s why research firm IDC expects cloud service providers to accelerate their data center investments. The company says total server spending will increase by 4 percent this year and 5 percent in 2018. 




 

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