CommScope Holding Co. agreed to pay $3 billion to buy a TE Connectivity Ltd. business that makes equipment for communications networks, giving it a bigger share of the market for broadband gear.

The transaction includes TE’s telecommunications, enterprise networks and wireless businesses with $1.9 billion in annual revenue, and excludes the submarine and data communications assets, Schaffhausen, Switzerland-based TE said Wednesday.

This is the biggest deal for Hickory, North Carolina-based CommScope, an equipment supplier with less than $4 billion in revenue that held its initial public offering in 2013. The takeover will reduce CommScope’s reliance on the U.S. market, which accounts of more than half of the company’s revenue, and allow it to expand in Europe, Middle East and Africa.

A surge in demand for data has boosted makers of components used in server farms as well as providers of cables for fixed- line connections and radio equipment. The deal, expected to be completed by the end of the year, will help CommScope strengthen its offerings for data centers and short-range wireless transmissions.

CommScope shares added 8 percent to $27.62 in New York at 9:33 a.m., giving the company a market value of $5.2 billion. TE rose 4.2 percent to $67.37 for a market capitalization of $27.5 billion.

TE’s remaining businesses focus on sensors and equipment that works in extreme environments. The company, which was spun off from Tyco International Plc in 2007, plans to use the proceeds to buy back shares.

Allen & Co., JPMorgan Chase & Co., Bank of America Corp. and Deutsche Bank AG advisedCommScope. Centerview Partners LLC, Goldman Sachs & Co. and Citigroup Inc. worked with TE.

--With assistance from Phil Serafino in Paris and Adam Ewing in Stockholm.

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