Cerberus Capital Management, L.P. and its affiliates say they have completed their purchase of the Subsea Communications business of TE Connectivity Ltd. The former TE SubCom will now operate as SubCom, LLC, under the leadership of new CEO David Coughlan. Cerberus paid $325 million in cash for its new company in a deal announced this past September (see “TE Connectivity to sell TE Subcom to Cerberus Capital Management”).
"We look forward to working with Dave and the SubCom team to build upon the business' leadership position,” said Michael Sanford, co-head of private equity and senior managing director of Cerberus. “We believe that need for reliable, high-performing undersea networks will continue to be exceptionally robust as demand for data and connectivity continues to increase around the world. With its industry-leading capabilities and reputation for operational excellence, we are confident that SubCom will continue to be the partner of choice to deliver and maintain these critical undersea networks for years to come."
SubCom offers system design, equipment manufacture (see, for example, “TE SubCom brings C+L optical transmission for submarine networks to production”), deployment, and other services to submarine cable network owners and operators. The company has built more than 200 submarine networks, with several projects currently ongoing (see, for example, “TE SubCom to add branches to MainOne submarine cable system” and “Hawaiki taps TE SubCom for submarine cable secondary network operations center”). The company is headquartered in Eatontown, NJ, and employs more than 1,400 people across four continents. At the time of the sale announcement, TE said the SubCom business was expected to contribute approximately $700 million in sales to fiscal year 2018 results.
Coughlan is returning to a previous employer, having served as general manager from 2001 to 2014 before moving to TE's Sensor Solutions business unit from 2014 to 2016. He comes back to SubCom from Littelfuse Inc. (NASDAQ: LFUS), where he was vice president of business development.
"I am excited to be back at SubCom and working with our team members as we begin this new chapter," said Coughlan. "SubCom is already the largest subsea fiber optic cable solutions provider with #1 share in the long-haul market. Through this partnership with Cerberus, we will be able to execute on strategic opportunities to position us for long-term success, while continuing to deliver the highest lifetime value network solutions to our global customers."
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