Shares of CommScope sank Tuesday after the company said it would sell its home-networks business to French firm Vantiva.
CommScope shares were down 8.6%, to $3.15, in afternoon trading. The stock is down about 57% this year.
The Hickory, N.C.-based network connectivity company said it would receive a 25% stake in Vantiva in exchange for the unit, as well as up to $100 million based on financial milestones.
CommScope will add a representative to Vantiva’s board.
The company said its home-networks business has struggled in the current environment, and CommScope evaluated multiple options for the business.