TE Connectivity Announces Definitive Agreement to Sell its Subsea Communications Business to Cerberus Capital Management

Wednesday 19 September 2018

TE Connectivity Ltd., a world leader in connectivity and sensors, announced that it has entered into a definitive agreement to sell its subsea communications business (SubCom) to Cerberus Capital Management, L.P., a global leader in alternative investing, for $325 million in cash.

The transaction is expected to close by the end of the first quarter of TE's fiscal year 2019 and is subject to customary closing conditions. The company expects to use proceeds from the sale to fund share repurchases. TE's SubCom business, a part of the company's Communications Solutions segment, is a leading global supplier of undersea communications technology and marine services.

The SubCom business was expected to contribute approximately $700 million in sales to fiscal year 2018 results, with a minimal contribution to profitability. TE will provide supplemental information with respect to the SubCom business, when it announces its financial results for the fourth quarter of fiscal year 2018.