CommScope Inc. (NYSE: CTV) announced on Wednesday that it is buying rival communications equipment maker Andrew Corp. (NASDAQ: ANDW) for $2.6 billion, a year after a failed $1.7 billion bid.
In Wednesday's agreement, CommScope now said it will to pay $15 a share, representing a 16 percent premium over Andrew's Tuesday closing price of $12.98. At least 90 percent of the payment will be in cash, the companies said.
Andrew shares jumped $1.42, or 10.94 percent to trade at $14.40 by the end or regular trading hours on the Nasdaq Stock Market
Andrew, based in Westchester, Illinois, produces products such as wireless networking equipment, and home and offices to telecommunications networks.
The combination of the companies' respective operations is expected to result in meaningful operating, cost and sales synergies, CommScope stated.
Frank Drendel, chief executive of CommScope, will take charge of the combined company.
In a separate announcement, CommScope raised its forecast for its second fiscal quarter.
CommScope projects it will generate $500 million to $510 million in revenue, compared to its prior estimate of $490 million to $510 million. It also boosted its expected operating margin to 15 percent to 16 percent , from a previous range of 14.5percent to 15.5 percent.
Commscope rose 71 cents, or $1.29 percent, to close at $55.87 on the New York Stock Exchange.