PARIS, FRANCE: Nexans has entered into exclusive negotiations with Syntagma Capital, a Belgium-based private equity fund, for the sale of its Telecom Systems Business.
This proposed transaction marks Nexans’ exit from the telecom and data activity in line with its strategy to simplify its activities and amplify its impact in Electrification markets.
The Telecom Systems Business operates primarily in the design, production and commercialization of advanced solutions for telecom, LAN networks as well as datacentres and constitutes the main remaining part of the Telecom & Data division after the sale of Berk-Tek in 2020. It employs around 680 people and has a turnover of around 200 million euros in aggregate.
Christopher Guérin, Chief Executive Officer of Nexans declared: “We are pleased that our Telecom Systems colleagues will join a strategic new home with Syntagma Capital to further invest and grow the business. This powerful combination will deliver meaningful opportunities to employees and customers. I would like to thank the teams for the excellent work they have done in the past, and I am confident in their future development.”
“We are pleased to partner with management to continue to grow the business. Providing the backbone for data management is an exciting prospect. This transaction represents our most recent carve out and reflects Syntagma’s strategy to acquire businesses that will benefit from a new owner to drive the next area of growth” said Sebastien Kiekert Le Moult, Managing Partner of Syntagma.
The proposed transaction remains subject to the fulfilment of customary conditions for this type of transaction, including the information and consultation of works councils and other regulatory approvals. The closing of the transaction is expected to be completed by the end of the first half of 2023.
Following the closing of the transaction, the Special Telecom division, active in the production and installation of subsea telecommunication systems, accessories and services based in Rognan, Norway, will become part of Nexans Generation & Transmission business group enhancing the global capabilities and commercial offering.