Carlyle Group Reinvests in CommScope to Help Fund Acquisition

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Carlyle Group

CG 0.48%

is reinvesting in CommScope Holding Co. to assistance a network infrastructure organisation enhance a connected and wireless communication networks.

CommScope pronounced Thursday it has concluded to buy telecommunications apparatus builder Arris International PLC in an all-cash understanding valued during about $4.93 billion. The company, that has also concluded to repay Arris’s debt, pronounced Arris shareholders will accept $31.75 a share.

CommScope skeleton to financial a understanding in partial by a $1 billion investment from Carlyle. The private-equity organisation bought CommScope in 2011, took it open in 2013 and sole off a remaining shares in 2016.

This latest investment gives Carlyle a 16% interest in CommScope, a association said.

The residue of a understanding will be financed with money on palm and financing commitments from J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Deutsche Bank Securities LLC.

The Arris understanding is approaching to tighten in a initial half of subsequent year. Upon completion, CommScope’s Eddie Edwards will sojourn boss and arch executive, and Arris CEO Bruce McClelland will join a total company.

The total association is approaching to have sales of about $11.3 billion, formed on financial formula for a dual companies for a 12 months finished Sept. 30. Arris had $6.7 billion in income over that period.

On Thursday, CommScope also posted third-quarter earnings. The association pronounced distinction rose 25% to $63.8 million and sales climbed 2% to $1.15 billion. On an practiced basis, a association warranted 59 cents a share. Analysts were awaiting practiced per-share gain of 66 cents and income of $1.22 billion.

Shares of CommScope fell 10% while Arris’s batch rose 11% in premarket trade Thursday.

Write to Kimberly Chin during kimberly.chin@wsj.com

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