CommScope has agreed to acquire Cable Exchange, a privately held, quick-turn supplier of fiber optic and copper assemblies for data, voice and video communications.
Cable Exchange, headquartered in Santa Ana, Calif., manufactures a variety of fiber optic and copper cables, trunks and related products used in high-capacity data centers and other business enterprise applications. The company, founded in 1986, specializes in quick-turn delivery of its infrastructure products to customers from its two U.S. manufacturing centers located in Santa Ana, Calif. and Pineville, N.C.
This highly complementary acquisition will deepen CommScope's capabilities in supporting the growing market for high-capacity, multi-tenant data centers and hyperscale data centers operated by the world's largest technology and retail companies. As more user-driven information and commerce flows through networks, operators are quickly deploying larger and more complex data centers to support growth in traffic and transactions.
"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," Edwards added.
The leadership team and employees of Cable Exchange will join CommScope upon completion of the transaction. Cable Exchange will operate as a stand-alone business within CommScope's Connectivity Solutions segment.
"We are thrilled to partner with an industry leader like CommScope," said Cable Exchange President Joey Hynes. "We look forward to building upon our teams' capabilities to serve the growing data center market."
The acquisition is expected to be completed within the next 60 days, subject to customary closing conditions, including receipt of regulatory approvals. CommScope intends to fund the acquisition with cash on hand. Additional terms of the deal were not disclosed.