TE Connectivity sells SubCom for USD 325 mln in cash

News Broadband Global 17 SEP 2018
TE Connectivity sells SubCom for USD 325 mln in cash
TE Connectivity has agreed to sell its subsea communications operations, SubCom, to Cerberus Capital Management for USD 325 million in cash. The deal is expected to complete by the end of TE’s fiscal first quarter, subject to the usual closing conditions. The company said it will use proceeds from the sale to fund share buybacks. SubCom, part of TE’s Communications Solutions segment, is a global supplier of undersea communications technology and marine services.  

 

CEO Terrence Curtin said that with the sale, TE Connectivity will be able to increase its focus as a leading industrial technology company, with a strong business model and growth profile, a reduced cyclicality, higher margins and a greater return on investment.  The business was expected to contribute about USD 700 million in sales to fiscal year 2018 results, with a minimal contribution to profitability. 

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Network equipment, Network operations services, Wholesale, Corporate strategy, M&A buyouts & divestments

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