French vendor Alcatel-Lucent has sold US subsidiary LGS Innovations to a group of investors for up to US$200m.
LGS exclusively serves the US federal government and provides secure networking and satellite communications.
It is being bought by…
French vendor Alcatel-Lucent has sold US subsidiary LGS Innovations to a group of investors for up to US$200m.
LGS exclusively serves the US federal government and provides secure networking and satellite communications.
It is being bought by Chicago-based PE firm Madison Dearborn Partners and its partner CoVant – which focuses on investments in national defence and homeland security – along with a number of other, undisclosed investors.
Alcatel will receive half of the proceeds when the deal closes and up to 50% in a variable component to be determined on the divested company’s results of operations for the 2014 fiscal year.
Completion of the deal is subject to US government approvals and is targeted to occur in the first quarter of 2014.
Alcatel said the disposal was part of its new plan announced in June, which aims to raise €1bn from asset sales by the end of 2015. It also plans to reduce its fixed costs by €1bn and a series of measures to tackle its debt.
In the last two months the network equipment maker has sold US$900m in bonds and raised US$1.3bn through a stock issue. Since the plan was announced, Alcatel’s stock has risen more than 120%.