CommScope, a provider of cable and telecommunications network products and equipment, announced Monday it is in discussions with The Carlyle Group under which the private-equity firm would acquire all of its outstanding shares for around $3 billion in cash.
Carlyle would take CommScope private for $31.50 per share under the deal being discussed, according to CommScope. The company's stock shot up more than 29%, trading at about $30 per share Monday morning.
CommScope said no agreement has been reached and added that "there can be no assurance that any transaction will result from these discussions." Allen & Company LLC is serving as the company's financial advisor and Gibson, Dunn & Crutcher LLP is serving as legal advisor.
The Hickory, N.C.-based company sells coaxial cable, optical solutions and related products to cable operators, as well as wireless equipment and cabinets for DSL and fiber-to-the-node networks.
Carlyle's cable industry holdings include a stake in Insight Communications. In April, the private-equity firm sold half its stake in the MSO.