By Adam Clark

CommScope Holding shares were surging on Monday after it agreed a deal to sell its broadband connectivity and cable unit to Amphenol. The deal is an example of how artificial intelligence is turning data-center components into one of the hottest areas of the market.

Amphenol confirmed it would buy the business from CommScope for $10.5 billion in cash, following a Wall Street Journal report that the deal was close.

CommScope stock was up 72% to $13.34 in premarket trading. Amphenol shares were up 1.6% to $106.

Amphenol was a Barron's stock pick earlier this year, citing the potential for the AI boom to keep driving sales of its connectivity products and its ability to expand through acquisitions. The stock has risen 50% since then.

Amphenol said the Connectivity and Cable Solutions business $(CCS)$ it is acquiring is expected to generate sales of around $3.6 billion this year. The unit provides fiber-optic and copper connectivity cables for data centers, cable television and residential broadband networks.

"CCS's broad portfolio of fiber optic interconnect solutions for the rapidly growing IT datacom market, including for artificial intelligence applications, is highly complementary to Amphenol's already strong product offerings in this market," said Amphenol CEO R. Adam Norwitt in a statement.

The deal is expected to add to Amphenol's diluted earnings per share in the first full year after closing, excluding acquisition-related costs. Amphenol said it would finance the deal through a combination of cash on hand and debt.

Write to Adam Clark at adam.clark@barrons.com

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August 04, 2025 08:08 ET (12:08 GMT)

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