Cerberus Forms SubCom, Acquires Business

Cerberus Capital Management has formed SubCom LLC to acquire the subsea communications business of TE Connectivity.

SubCom designs, manufactures, deploys, and services fiber optic cable systems that are used to transmit data and communications. The company has completed more than 200 networks (with enough undersea cable to circle the Earth more than 17 times at the equator) for many of the world’s leading technology companies and entrepreneurs.

SubCom is headquartered near New York in Eatontown, NJ and has more than 1,400 employees on four continents (www.subcom.com).

At closing of the acquisition, Cerberus named David Coughlan as the new CEO of SubCom. Mr. Coughlan was previously the General Manager of the business from 2001 to 2014. From 2014 to 2016, Mr. Coughlan was the General Manager of TE’s Sensor Solutions business unit and, most recently, he was the Vice President of Business Development at publicly-traded Littelfuse.

“I am excited to be back at SubCom and working with our team members as we begin this new chapter,” said Mr. 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.”

TE Connectivity (formerly Tyco Electronics) designs and manufactures connectivity and sensor products for harsh environments in a variety of industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics, energy and subsea communications. The company has more than $13 billion in revenue and nearly 90,000 employees in over 50 countries. TE Connectivity (NYSE: TEL) is headquartered near Philadelphia in Berwyn, PA (www.te.com).

“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.”

Cerberus has approximately $35 billion of capital under management and invests in three strategies: global credit opportunities (which includes non-performing loans, corporate credit & distressed debt, mortgage securities & assets, and direct lending); private equity; and real estate. The firm was founded in 1992 and is headquartered in New York (www.cerberuscapital.com).

© 2018 Private Equity Professional | November 6, 2018

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