Nexans has entered into negotiations with Belgian private equity fund, Syntagma Capital for the sale of its telecom systems activity.
The proposed transaction marks Nexans’ exit from the telecom and data activity in line with its strategy to streamline activities and focus on its impact in Electrification markets.
Based in Rognan, Norway, Nexans’ telecoms business operates primarily in the commercial supply of advanced solutions for telecom, LAN networks and data centres and is active in the production and installation of subsea systems, accessories and services. It constitutes the main remaining part of the telecom and data division following the sale of Berk-Tek in 2020. The division employs around 680 people and has a turnover of around €200m in aggregate.
Following the closing of the transaction – which is expected during the first half of this year, subject to customary conditions – the special telecom division will become part of Nexans Generation & Transmission business group enhancing the global capabilities and commercial offering.
Christopher Guérin, Chief Executive Officer at Nexans says: “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. ”
Sébastien Kiekert Le Moult, Managing Partner at Syntagma adds: “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.”
