TE Connectivity SubCom Sale Strengthens Business Strategy
The TE Connectivity SubCom sale marks a strategic shift for TE Connectivity, as the company agreed to sell its subsea communications unit to Cerberus Capital Management for $325 million in cash. Learn more at https://www.te.com and https://www.cerberus.com.
TE Connectivity plans to use the proceeds to fund share repurchases and improve its overall financial performance.
SubCom Capabilities and Global Operations
SubCom has built a strong presence in the subsea cable market. The company has completed more than 100 cable systems and deployed over 610,000 km of subsea cable using its fleet of eight cable-laying ships.
The transaction includes SubCom’s manufacturing plant, 63 employees, and all related engineering, development, and sales operations. The deal is expected to close by the first quarter of 2019.
Financial Impact and Growth Focus
The TE Connectivity SubCom sale will help streamline operations and improve profitability. CEO Terrence Curtin stated that the move will strengthen the company’s business model, reduce cyclicality, and increase margins and returns.
TE Connectivity generates approximately $13 billion in annual revenue from its connectivity solutions business.
SubCom Expands West Africa Cable Network
Separately, SubCom has secured a contract with MainOne, a leading connectivity and data center provider. Learn more at https://www.subcom.com and https://www.mainone.net.
The project will extend MainOne’s 7,000 km submarine cable system into West Africa’s francophone region. New branches will connect Dakar, Senegal, and Abidjan, Côte d’Ivoire.
Once completed, the upgraded system will support a capacity of up to 10 Tbps. The subsea network is expected to become operational by November 2019, improving regional connectivity and digital infrastructure.
