CommScope announced Thursday it will spin off its Home Networks business, one move among others in the works that are designed to reduce operating costs throughout the company.
The move follows a recent wave of speculation that CommScope was preparing to make a big move centered on a struggling unit that makes set-tops and other types of consumer premises equipment (CPE). Among the possibilities included a sale, the formation of a joint venture or a transaction that would get the unit off the books. The third of those options is the one CommScope plans to take forward.
The coming transaction is intended to be executed through a tax-free spin-off to CommScope shareholders to form a new and independent publicly traded company that will pursue its own strategies along with focused R&D and sales teams. CommScope also expects the move to provide the Home Networks unit with greater opportunities to access capital.