(Reuters) – French technology company Vantiva, formerly Technicolor, said on Tuesday it had reached an agreement to buy the Home Networks division of U.S. network infrastructure provider CommScope in exchange for a 25% stake. % to its capital.
The agreement includes an earn-out of up to $100 million (€95 million) for CommScope, conditional on Vantiva achieving EBITDA equal to or greater than €400 million in any given fiscal year over the five years following the first financial year after the conclusion of the acquisition.
On the Paris Stock Exchange, Vantiva gained 14.03% to 0.1740 euros at 09:03 GMT.
“The acquisition of Home Networks would significantly increase the scale of our business, while also generating significant synergies, which would significantly strengthen our free cash flow generation potential,” said Luis Martinez-Amago, Chief Executive Officer of Home Networks. Vantiva, in a press release.
The transaction is expected to generate more than €100 million in pre-tax synergies by fiscal year 2026 and is expected to be completed by the end of 2023.
Home Networks provides devices that connect homes to the internet and video set-top boxes. The acquisition will allow Vantiva to strengthen its Connected Home division.
(Written by Michal Aleksandrowicz, French version Corentin Chappron, edited by Blandine Hénault)
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