CommScope Inc. (CTV) announced a definitive agreement to acquire Andrew Corp. (ANDW) for $15 per share or $2.6 billion, based on Andrew's estimated 176 million shares outstanding. The company said at least 90% of the payment would be through cash. The acquisition value represents a premium of around 13% over Andrew's average closing share price for the last 30 trading days and a 16% premium over the closing price on Tuesday, June 26, 2007.
The transaction is expected to be accretive to CommScope's cash earnings per share, excluding special items, in the first full year after closing. The companies expect to close the transaction by the end of 2007, subject to completion of customary and regulatory closing conditions.
As per the agreement, each share of Andrew common stock will be converted into $15.00, comprised of $13.50 per share in cash and an additional $1.50 per share in either cash, CommScope common stock, or a combination of cash and CommScope common stock totaling $1.50 per share, at CommScope's option.
CommScope said the two companies fit together strategically with leading complementary product offerings and geographical strengths.
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