An affiliate of Cerberus Capital Management has entered into an agreement with TE Connectivity which will see Cerberus acquire TE's Subsea Communications business, SubCom.
SubCom is a global supplier of subsea communications systems which designs, manufactures, deploys, and maintains the subsea fibre optic cable systems. To date, the company has completed more than 100 cable systems and deployed over 610,000km of cable. SubCom, supported by approximately 1,400 employees, has a strong customer base of leading internet content providers, telecommunications companies, and entrepreneurs around the world.
Michael Sanford, co-head of North American private equity and senior managing director of Cerberus said: ‘SubCom is a recognised pioneer in the subsea fibre optic cable industry with a long track record of technology innovation and excellent project management and customer service. Through this investment, SubCom will become an independent, standalone business that is well-positioned to capitalize on the significant growth opportunities ahead. We look forward to partnering with the talented SubCom employees and leveraging our operational expertise and resources to deliver innovative, integrated, and reliable solutions to meet the needs of SubCom's global customers.’
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2018.