CommScope Announces Prepare to Spin-Off its Residence Networks Business into Impartial Public Firm

HICKORY, N.C.–(Enterprise WIRE)–CommScope Holding Enterprise, Inc. (NASDAQ: COMM), a international chief in connectivity alternatives for communications networks, today announced its program to spin-off its Home Networks business enterprise and other initiatives to reduce working fees during the Enterprise.

Alongside one another, the planned separation of CommScope’s Property Networks enterprise and functioning price reduction signify early measures in the Company’s CommScope Subsequent method to optimize the organization portfolio, travel over-sector advancement, and regulate charges. The separation is meant to be executed via a tax-absolutely free spin-off to CommScope shareholders to type a new and impartial publicly traded organization. The separation is anticipated to be concluded by the close of the to start with quarter of 2022.

“Since I joined CommScope final October, the Board and management group have been undertaking a extensive evaluate of our portfolio of belongings and how every single contributes to our very long-term advancement technique,” mentioned Chuck Treadway, president and chief government officer. “As we proceeded with this review, it turned clear that the House Networks business’ distinct tactic, development qualities, investment decision prerequisites and returns on invested cash are not aligned with the relaxation of our portfolio. We believe that Household Networks will be improved positioned to produce outstanding property and buyer-oriented products as an unbiased firm. In addition, we are relocating quickly to streamline prices to generate better money adaptability to invest in our development. We anticipate the price reduction actions we are taking in core CommScope to, at a minimal, offset Residence Networks’ altered EBITDA and create personal savings we can reinvest in our small business, which should really end result in write-up-spin leverage in core CommScope at no a lot more than present-day ranges.”

Mr. Treadway concluded, “With today’s bulletins, our CommScope Following tactic is very well underway, and, as we move ahead, advancement, expense management and portfolio optimization will continue on to be our priorities. We stay enthusiastic about CommScope’s potential, and with the core things of our technique intact, we are confident in our skill to provide innovative alternatives for community convergence for customers all-around the entire world.”

Powerful Advantages of the Separation

The planned spin-off will allow CommScope and House Networks to emphasis on innovation and pursue strategic industry alternatives, accelerating progress and unlocking better benefit for their clients. Essential gains of the separation include:

• Creating a clearer development trajectory for CommScope, as very well as larger opportunity for margin expansion, although focusing on supplying marketplace-top remedies in wireless communications, broadband shipping and company networking
• Cutting down complexity within just CommScope, allowing it to target on the main features of the portfolio that will drive progress in the evolution of the networks it serves
• Creating a standalone Dwelling Networks business, a top connected home methods provider with an optimized charge composition and targeted R&D and Revenue teams, enabling an accelerated pace of innovation unlocking strategic value and growth in a “Connected Home” long term
• Offering House Networks with higher target and versatility to create its have systems, go-to-sector tactic and a finest-in-class manufacturing model to superior supply house and consumer solutions and
• Letting CommScope and House Networks to just about every go after separate techniques, developing two unique identities and far more qualified investment opportunities, furnishing Residence Networks with greater possibilities to access funds.

CommScope, Driving Global Connectivity

Next the completion of the spin-off transaction, CommScope will be composed of the subsequent 3 enterprise segments:

• Broadband Networks: Focused to serving the telco and cable company broadband sector as a primary tools company. The segment is concentrated on expanding its latest portfolio and deployment of DAA and virtualized platforms and driving investments to expand fiber ability, fiber connectivity and community orchestration.
• Location and Campus Networks: Concentrating on each public and non-public networks for campuses, venues, data facilities, and structures. Location and Campus Networks is targeted on driving overall performance in its RUCKUS Wi-Fi 6 and cloud control platforms, ONECELL capabilities to capitalize on 5G advancement and virtualization, and driving high-density enlargement in knowledge centers.
• Out of doors Wireless Networks: Concentrated on the Macro and Metro Mobile firms and setting up metro cell electric power answers and modularity design innovation. The segment is also doing work on the progress of new technologies in mobile site connectivity and other technologies to assist telco carriers building their 4G and 5G networks.

CommScope will continue on to be led by Chuck Treadway, president and CEO, and its current administration workforce.

House Networks, a Top Supplier of Connected House, Electronic Life, & Amusement Solutions

With its long heritage of providing market place-primary systems and solutions, Residence Networks will be properly positioned to provide top-quality household and shopper-oriented goods and to unlock substantial price across its wide product strains and purchaser foundation.

On completion of the separation, Joe Chow, Residence Networks senior vice president, will become the main govt officer of the stand-on your own Home Networks corporation. The Board of Administrators, administration, firm name and headquarters will be announced following they are finalized. The new, impartial company is envisioned to be detailed on the NASDAQ stock exchange upon completion of the separation.

Transaction Specifics

CommScope anticipates that the transaction will be in the sort of a distribution to CommScope shareholders of 100% of the stock of House Networks, a new, unbiased publicly traded business, which is supposed to be tax-free to U.S. shareholders for U.S. federal revenue tax applications.

CommScope at this time expects the transaction will be completed by the conclude of the initially quarter of 2022, matter to sector, regulatory and sure other problems, which include last approval of CommScope’s Board of Administrators. There can be no assurance concerning the supreme timing of the proposed transaction or that the transaction will be concluded.

Advisors

J.P. Morgan is serving as economic advisor, and Alston & Hen and Baker McKenzie LLP are acting as legal advisors to CommScope.

Conference Simply call and Webcast

CommScope will host a meeting phone right now at 8:30 am ET to discuss this announcement. The conference contact will also be webcast.

To take part in the conference phone, dial +1 844-397-6169 (US and Canada only) or +1 478-219-0508. The convention identification amount is 5858113. Be sure to plan to dial in 15 minutes prior to the start off of the get in touch with to facilitate a timely relationship. The live, pay attention-only audio of the get in touch with and corresponding presentation will be readily available as a result of a connection on CommScope’s Trader Relations page.

A webcast replay will be archived on CommScope’s internet site for a restricted period of time subsequent the convention phone.

About CommScope:

CommScope (NASDAQ: COMM) is pushing the boundaries of technological innovation to generate the world’s most advanced wired and wireless networks. Our global group of staff, innovators and technologists empower consumers to anticipate what is subsequent and invent what is possible. Discover far more at www.commscope.com.

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Ahead Seeking Statements

This push release or any other oral or prepared statements made by us or on our behalf may well consist of forward-on the lookout statements that replicate our latest views with regard to long run functions and economical general performance. These statements could focus on targets, intentions or expectations as to potential designs, trends, functions, results of functions or economical affliction or if not, in every single case, based on latest beliefs and expectations of management, as perfectly as assumptions designed by, and facts presently accessible to, these management and incorporate, without the need of limitation: statements linked to the completion and timing of the proposed spin-off, the potential efficiency of the Home Networks and remaining CommScope businesses on a stand-alone foundation if the spin-off is accomplished the outlook for Home Networks as a independent small business if the spin-off is finished the envisioned strategic, operational and aggressive added benefits of the proposed spin-off and the impact of the separation on CommScope and its stakeholders and estimates of long run product sales, functioning margin, hard cash move, efficient tax fee or other long term functioning efficiency or economical effects. These ahead-searching statements are normally discovered by their use of these types of conditions and phrases as “intend,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,” “potential,” “anticipate,” “should,” “could,” “designed to,” “foreseeable foreseeable future,” “believe,” “think,” “scheduled,” “outlook,” “target,” “guidance” and identical expressions, while not all forward-seeking statements consist of these types of terms. This listing of indicative conditions and phrases is not intended to be all-inclusive.

These forward-hunting statements are matter to different challenges and uncertainties, numerous of which are outside the house our management, such as, without limitation, hazards related to the prepared spin-off of the Dwelling Networks business, which includes uncertainty pertaining to whether this sort of transaction will be commenced or completed and the timing and value of these kinds of transaction risks associated to the prospective separation of the Residence Networks organization our skill to integrate and completely notice the predicted positive aspects from prior or upcoming divestitures, acquisitions or fairness investments (together with hazards connected to the ARRIS acquisition) promoting or discontinuing 1 or additional of our product lines likely troubles in realigning worldwide producing capacity and capabilities among our world-wide production services or people of our agreement brands that could have an impact on our capacity to meet up with client needs for products and solutions achievable long term restructuring steps our dependence on customers’ cash paying on information and interaction systems concentration of profits amid a limited variety of clients and channel associates variations in know-how marketplace competitors and the means to retain shoppers by way of item innovation, introduction, and promoting pitfalls associated with our gross sales through channel companions changes to the regulatory ecosystem in which we and our clients function solution high quality or functionality issues and connected warranty statements our means to sustain effective management data technological innovation systems and to properly apply significant techniques initiatives cyber-security incidents, together with facts protection breaches, ransomware or laptop viruses the danger our international production operations undergo generation or shipping and delivery delays, creating issue in conference shopper demands the hazard that internal output potential or that of deal companies may be insufficient to meet up with buyer desire or high quality specifications the use of open requirements the very long-time period affect of weather modify alterations in cost and availability of vital raw components, components and commodities and the possible outcome on buyer pricing challenges associated with our dependence on a confined variety of crucial suppliers for specified raw elements and components the chance that agreement manufacturers we rely on face manufacturing, top quality, monetary or other complications substantial indebtedness and restrictive debt covenants our capability to incur extra indebtedness our potential to deliver cash to assistance our indebtedness probable long run impairment costs for fixed or intangible assets, including goodwill earnings tax price variability and potential to get well amounts recorded as deferred tax assets our means to attract and retain competent important personnel labor unrest obligations beneath our outlined profit worker profit strategies necessitating strategy contributions in excess of existing estimates major intercontinental operations exposing us to economic, political and other challenges, including the influence of variability in foreign trade costs our means to comply with governmental anti-corruption laws and laws and export and import controls around the globe our ability to compete in global marketplaces owing to export and import controls to which we may well be matter variations in the legal guidelines and guidelines in the United States influencing trade, which includes the threat and uncertainty linked to tariffs or a probable worldwide trade war and prospective variations to rules and procedures as a outcome of a new administration in the United States, that might influence our goods price tag of protecting or defending intellectual house costs and challenges of compliance with domestic and foreign environmental guidelines the influence of litigation and very similar regulatory proceedings that we are concerned in or may perhaps develop into involved in, which include the costs of these types of litigation the scope, period and influence of condition outbreaks and pandemics, these kinds of as COVID-19, on our business enterprise, which includes employees, sites, functions, customers and supply chain risks linked with stockholder activism, which could result in us to incur substantial expenditure, hinder execution of our organization technique and effects the trading benefit of our securities and other factors past our handle. These and other components are reviewed in better element in our 2020 Yearly Report on Form 10-K and may be up-to-date from time to time in our annual stories, quarterly experiences, present reports and other filings we make with the Securities and Trade Commission.

Whilst the facts contained in this push release signifies our greatest judgment as of the date of this launch primarily based on details at this time readily available and realistic assumptions, we can give no assurance that the anticipations will be attained or that any deviation will not be substance. Presented these uncertainties, we warning you not to put undue reliance on these ahead-hunting statements, which talk only as of the day designed. We are not endeavor any obligation or obligation to update this facts to reflect developments or information and facts acquired immediately after the date of this push release, except as usually may be needed by regulation.

Resource: CommScope