https://www.globenewswire.com/news-release/2023/10/03/2753307/0/en/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-roa.html
19 replies (most recent on top)
If the stock price keeps on falling, delisting from Nasdaq becomes a real possibility. However, they would want to cash in those free stocks before they become worthless. Hence, fire sale will accelerate.
There are many reasons CS is falling apart, one of it is they do not recognize or reward good employees. HR and top level, they think all engineers / managers have same skills as long as same title, hiring new grad cheaper to replace well experienced engineer, same in their mind, this is not only in CS, but in most co-operations, same old design / quality fault happened again and again. Vantiva is going to repeat the same failure as with CS Arris merger. If u think that you are important to CS, I am sorry to tell you not in their mind. The fire finally is burning to home by closing the Claremont. This company once was great. Good luck.
I was refering to customer rather than end user support. It is common for a team other than the original design team to then provide support after initial launch.
So if I worked on the original design I would not expect to be guaranteed employment until the product is out of its support period. This work can be transferred
“Support” doesn’t mean waiting for someone to call so you can tell them to turn it off and on again. These are products sold with commitments to tier 1 customers who Vantiva probably want to retain as customers.
Going by the decline in sales for most of the CommScope divisions it would appear they have been doing that for a while now.
Support can be handed off to a low cost location. No point in paying folk a relative fortune to twiddle their thumbs 50% of the time
Yeah, but every product CS/HN has deployed still needs to be supported. There isn’t a lot of investment type R&D going on right now, which is primarily where the cuts would be due to overlaps.
Not sure about engineering. The presentation on vantivas website talks about common platforms. There might not be much customer overlap but surely the products are very similar, there are a limited number of silicon vendors and software stacks.
Also Is there a policy of engineering in low cost locations
Upside: very little customer overlap. Vantiva has FWA and PON products already, so I expect that HN’s development efforts will be mixed there.
Downside: except for engineering staff, I don’t expect they’ll keep very many HN employees. Looking at their 1H23 financial presentation, Vantiva isn’t exactly healthy either. CS could end up with 25% of nothing.
I know some HN folks who hopped over to Vantiva in the recent past, before the sale. Maybe we’ll hear from some of them.
It is an embarrassing moment for CS now having to unwind their acquisition of Arris in a difficult economic climate. I cannot fathom why the debts weren't refinanced with better repayment schedule while interest rates were low?
For HN, folks should not lose sight of the fact that of all the BUs, it brought in the 2nd highest revenue for Q4/22. HN should have a brighter future if the new owners know how to use HN's strengths to compliment their business enabling the combined unit to conquer new opportunities. They appear to want HN, whereas CS viewed HN as a problem from the get go. A fact they never allowed folks to forget with their core CS, Vs HN divide.
What does HN have that Vantiva doesn't, it would appear that HN holds the same market share with only 1/5th of the resource so i guess it wasnt so under achieving after all.
I guess some might be glad it's over. It was obvious from the beginning in 2018 Commscope had no idea what it had bought when it acquired Arris. Commscope's website boasted picturesof RJ45 wall sockets, Arris had pictures of CMTS's DOCCIS Cable Gateways, magic boxes that connected to televisios, no similarities whatsoever. Arris only bought Pace because Mike Pulli bought Arora and him being ex Motorola, that sure pi---d off boys in Arris. They had to prove they had the bigger ba--s and take Pace down. Its a sad story for all it would seem but at least for HN there is the endearing promise the sun will finally set.
I think the market reaction to the deal is justified. After all, CS will not be receiving any cash which it can readily use to reduce the $9.5B debt mountain.
Lightreading:
https://www.lightreading.com/cable-technology/commscope-exploring-sale-of-assets-including-access-network-unit-to-drive-down-debt-sources
states that Ruckus & ANS are also up for sale. With the recent insider buying, one can expect what's left of core CS will also be sold at a premium to make all them free stock awards worthwhile.
What's the vibe like in HN at the moment, positive, negative or wait and see? What does HN do that vantiva doesn't?
Vantiva is a French dodo, changed its name after each near bankruptcy (Thomson to Technicolor to Vantiva).
Share price nearly 85% down since refloated on Paris exchange 12 months ago. Vantiva Senior management once again trying to drown the fish: they should try and concentrate on what they have. Integrating this new bit will generate additional expenses, not 'synergies'. I saw it first hand when Pace bought Phillips STB business......
Commscope won't get a penny back from this deal but will be happy to have dumped a money pit. Chuck is such a genius ROFL.
Steel business was only making profit and they already removed that BU from Home Network. Buyer will get just a junk and nothing.
Anyone else heard rumours on other bu's up for sale next?
Looks like CS Want to offload bu's from Arris acquisition?
Going from bad to worse
Stock down nearly 10% doesn't look like this has gone down that well
Almost given away. Wonder how much overlap there is, talk of synergy
Will this help with any of the debt? Will Vecima take on some of the debt at all?