TE Connectivity, the Swiss maker of electrical connectors and sensors with a U.S. headquarters in Berwyn, is selling its undersea communications business, SubCom, writes Joseph DiStefano for the Philadelphia Inquirer.

Cerberus Capital Management, which places cables across the ocean floor for large technology enterprises such as Google and Facebook, has agreed to pay $325 million for the unit.

The price was just under the half of SubCom’s yearly sales of around $700 million; however, the unit was minimally profitable.

David Holt, analyst for CFRA Research, wrote in a report to clients that program delays from SubCom had an adverse effect on the company’s profit margins in the latest earnings report.

“The deal removes this overhang,” he said.

Terrence Curtin, TE’s CEO, said that SubCom was “distinctly different from the rest of TE’s connectivity and sensor portfolio.”

He said that, while the unit is a leader in the business of connecting the Internet around the globe, it is also a cyclical business with modest profit margins and uncertain growth.

Read more about TE Connectivity in the Philadelphia Inquirer here.

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