Business

CommScope to spin off home-networks business

CommScope Holding Co.
COMM,
-0.77%

intends to spin off its home-networks business as a way of reducing operating costs, the company announced Thursday. The spinoff, which is expected to be completed by the end of the first quarter of 2022, is one of several steps the company is taking to cut operating expenses. The company recently did a review of its portfolio, through which “it became clear that the Home Networks business’ distinct strategy, growth characteristics, investment requirements and returns on invested capital are not aligned with the rest of our portfolio,” Chief Executive Chuck Treadway said in a release. “We believe that Home Networks will be better positioned to deliver superior home and consumer-oriented products as an independent company.” After the separation, CommScope’s business will be focused on broadband networks, venue and campus networks, and outdoor wireless networks, the company said. Shares of CommScope are up more than 5% in premarket trading Thursday. They’ve gained 10.5% over the past three months as the S&P 500
SPX,
+0.15%

has added 7.3%.

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