Vantiva Announces it has entered into an agreement with CommScope to acquire CommScope’s Home Networks in exchange for a 25% stake in Vantiva SA., a key milestone in its strategic roadmap

Press Release    

Vantiva Announces it has entered into an agreement with CommScope to acquire CommScope’s Home Networks in exchange for a 25% stake in Vantiva SA, a key milestone in its strategic roadmap

Paris (France), October 3^rd, 2023 – Vantiva (Euronext Paris: VANTI), formerly known as Technicolor, a global technology leader designing, developing and supplying innovative products and solutions connecting consumers around the world, today announced that it has entered into a call option agreement with CommScope, a US company (NASDAQ : COMM), to acquire CommScope’s Home Networks division (Home Networks), a provider of devices that supply residential connectivity and video set top box solutions. The planned acquisition of CommScope Home Networks represents a transformational transaction for Vantiva, as it would significantly increase Vantiva’s Connected Home capabilities. In the last twelve months ending June 2023, CommScope Home Networks and Vantiva’s Connected Home generated $[1.5]bn and €[2.0]bn in sales, respectively.

“This planned strategic acquisition represents a unique transformative opportunity for Vantiva,” said Luis Martinez-Amago, CEO of Vantiva. “It will enable us to reinforce Vantiva’s Connected Home operations, accelerate our innovation roadmap and expand into new markets through additional commercial partnerships. From a financial perspective, the acquisition of Home Networks will substantially increase the scale of our business while also generating synergies, which will significantly strengthen our free cash flow generation potential. This will result in a value-enhancing transaction benefiting all stakeholders, including end-consumers, customers, employees, shareholders and lenders. Subject to various approvals, we will be thrilled to welcome CommScope as a shareholder in Vantiva and our new colleagues joining us from CommScope Home Networks.”

Following the acquisition, Vantiva would significantly expand its portfolio of clients, increase its footprint to key geographies, and enhance its capabilities for innovation as a result of the combination of best practices from both businesses, ultimately benefitting customers and strengthening Vantiva’s existing diversification strategy.
Vantiva would fully integrate Home Networks into its Connected Home division, improving operational efficiency through increased scale. As a result, the transaction is currently expected to generate in excess of €[100]m in pre-tax cash synergies on a run-rate basis (estimated to be reached in fiscal year 2026), primarily driven by cost optimization initiatives and operational efficiencies. Cash impact from net synergies is expected positive from 2025 on. This synergy potential would significantly improve Vantiva’s cash generation, ultimately driving value creation for all stakeholders.