Alcatel-Lucent finalises divestment of enterprise division
01 October 2014 |
Alcatel-Lucent has received a €202 million cash injection following the divestment of its enterprise division to the China Huaxin Post & Telecommunication Economy Development Centre.
Alcatel-Lucent will maintain a minority stake in Alcatel-Lucent Enterprise, which will be incorporated in France and headquartered in Colombes near Paris. It will have over 2,700 employees worldwide and operations in more than 80 countries.
The companies claim the move will provide Alcatel-Lucent Enterprise with a “strong and recognised investor” that will help accelerate investment in new areas of net growth. It in particular earmarked opportunities in high-growth markets, vertical solutions and cloud services.
“We see success as creating long-term value and customer relevancy by delivering business outcome to customers and partners through technology and business innovations,” said Michel Emelianoff, CEO, Alcatel-Lucent Enterprise
“With such a dedicated investor, we now have the ability to execute on our ambition to become an essential player in the enterprise communications market and still be a reference for innovation and user experience,” he added.
Alcatel-Lucent has embarked on a period of cost cutting, since it introduced “The Shift Plan” in June 2013, aimed at reducing costs by €1 billon.
In April, it also closed the sale of its satellite unit, LGS Innovations, to a US-based investor group.
In August, it repaid in full a $1.75 billion loan that was secured with patents in January 2013.