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20 December 2013
French vendor Alcatel-Lucent will reportedly sell its satellite communications subsidiary, LGS Innovations, for an estimated $200 million.
Alcatel said in a statement
today that it expects to sell LGS – which supplies
secure networking products and services to the US defence
industry – to an investor group in the US, backed by
Madison Dearborn Partners.
The investor group includes technology investor, CoVant, and
the sale forms another part of
Alcatel’s debt-reduction strategy.
Joseph Kampf, CEO of McLean for CoVant said: "We place to
capitalise on LGS Innovations’ competitive
positioning and work to expand its presence within the US
government and drive its revenue by broadening its customer
base, products and solutions."
The sale is expected to complete in the first quarter of 2014,
at which point half of the sale price will be paid.
The remainder will reportedly depend on the
businesses’ earnings next year and US authorities
must approve this transaction.
Earlier this month,
Alcatel-Lucent signed an agreement with a Belgian transport
operator for the deployment of a broadband network in the
Madison Dearborn Partners,