Private equity firm Syntagma Capital has entered exclusive talks with fiber optic manufacturing company Nexans to acquire its LAN/data center (LAN/DC) and Telecom /Fiber (FTTx) division.

The financial details around the deal were not disclosed, however, a deal is expected to be completed by the end of the first half of 2023, pending regulatory approvals and the fulfillment of customary closing conditions.

Paris-based Nexans specializes in designing, manufacturing, and distributing smart connectivity solutions based on optical fiber and copper technologies to data centers, smart buildings, and telecom operators.

"Providing the backbone for data management is an exciting prospect," said Syntagma managing partner Sebastien Kiekert Le Moult.

"Despite a challenging M&A market, we are continuing to find attractive opportunities to invest our capital while providing sellers with divestiture solutions for complex carve outs where speed and certainty are of the essence. 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."

Willkie Farr & Gallagher provided legal counsel to Syntagma, while PwC provided financial, legal, tax, and social advice. Meanwhile, Roland Berger provided commercial and strategy support, and ERM advised on ESG and EHS matters.

Last year Nexans generated €200 million ($213m) in revenues across over 100 countries, with the French company employing around 680 people across its eight sites located in France, Belgium, Germany, Greece, Morocco, and China.