CommScope's private equity parent Carlyle is considering an initial public offering of the company, three years after it took the network equipment manufacturer private for $3.9 billion in 2010.
Citing two people close to the matter, a Reuters article reported that Carlyle is talking to investment banks about conducting the IPO this year if the market conditions are favorable. However, these two people added that the company has not hired underwriters to handle the proposed IPO.
Carlyle would not comment to Reuters, while CommScope did not respond to a request for a comment.
Moody's Investor Services forecast that sales of cable and related network infrastructure to wireless operators would drive "modest growth" at CommScope. In addition to wireless it has developed its "Electrical to Optical" (E2O) product that allows cable MSOs to migrate their hybrid fiber-coax networks to all-fiber networks such as PON and RFoG.
The financial services firm added that Commscope had over $3 billion in revenues in the 12 months ending March 2013.
Private equity companies such as Carlyle play an active role in purchasing various vendors and competitive fiber providers.
Court Square and Riverside have in recent years added service providers such as Fibertech and Tech Valley Communications to their portfolios, providing necessary financial backing and other resources to grow their businesses.
- Reuters has this article
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