Alcatel-Lucent to sell satellite unit
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 country.