Summary
TE Connectivity plc (formerly Tyco Electronics Ltd.) announced on May 13, 2008, its entry into a definitive agreement to sell its Radio Frequency Components and Subsystem business to Cobham Defense Electronic Systems Corporation, a subsidiary of Cobham plc. The sale is for $425 million in cash and is anticipated to close by the end of calendar year 2008, subject to customary closing conditions, including regulatory approvals. This divestiture aligns with the company's previously announced strategic intent to sell this specific business segment. The Radio Frequency Components and Subsystem business was previously part of the Wireless Systems segment and is currently classified as a discontinued operation, with its results reported accordingly. Investors should note this action reflects a strategic shift, potentially aimed at focusing on core competencies and improving financial flexibility through the cash infusion from the sale.
Key Highlights
- 1Definitive agreement signed to sell Radio Frequency Components and Subsystem business.
- 2Sale price of $425 million in cash.
- 3Buyer is Cobham Defense Electronic Systems Corporation, a subsidiary of Cobham plc.
- 4Transaction expected to close by the end of calendar year 2008.
- 5Sale is subject to customary closing conditions and regulatory approvals.
- 6The business being sold is classified as a discontinued operation.
- 7This divestiture was a previously announced strategic intention.