Nexans has entered into exclusive negotiations with Syntagma Capital, a Belgium-based private equity fund, for the sale of its Telecom and Data business.

A press release said that the 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 transaction is expected to be completed by the end of the first half of 2023.

The sale would include eight sites spread across France, Belgium, Germany, Greece, Morocco, China and Singapore that design, produce and commercialize advanced solutions for telecom, LAN networks as well as data centers. These operations constitute the main remaining part of the Telecom & Data division after the sale of Berk-Tek in 2020.

The proposed sale furthers the choice by Nexans to focus on electrification markets. In the company’s 2022 earnings report, CEO Christopher Guérin said that the numbers support that decision. “We were, yet again, proven right in reaffirming our choice: ‘Striving to champion a global sustainable electrification.’ As global grid investments soar, our Electrification businesses are up +12.9% organically, with record EBITDA performance, and all-time high adjusted Generation & Transmission backlog.”

S&P Global Ratings revised its outlook for Nexans from stable to positive and confirmed its ‘BB+’ rating. “Nexans’ operating performance has improved, thanks to progress made in its transformation plan, which focuses on electrification and achieving higher and more stable cash flows.”

At its website, Syntagma notes that the company, established in 2009, invests in businesses that can benefit from its hands-on operational expertise to accelerate growth and improve performance. It has deployed €1.1 billion in over 40 companies with revenues in excess of €4 billion and employing over 11,000 people worldwide.

The team has successfully carved-out businesses from public and private companies, among others, Solvay, Tessenderlo, Ashland, Clariant, Tyco International, Smurfit Kappa, ADT and Getronics.