Alcatel-Lucent (Euronext Paris and NYSE: ALU) said it will sell its subsidiary, LGS Innovations LLC, to a US-based company owned by a Madison Dearborn Partners-led investor group that includes CoVant.
The divestment forms part of the commitments outlined by Alcatel-Lucent in its “shift plan” strategy to reposition the company as a specialist in IP networking and ultra-broadband access, while reducing its fixed cost structure by EUR1bn and making selective asset sales to generate at least EUR1bn by the end of 2015.
The cash transaction agreed between Alcatel-Lucent and the Madison Dearborn/CoVant group will comprise a total amount of up to USDUSD200m, of which 50 per cent will be paid at closing, and up to 50 per cent in a subsequent variable component to be determined on the divested company´s results of operations for the 2014 fiscal year. Closing of the transaction is subject to certain conditions, including US government approvals, and is targeted to occur in the first quarter of 2014.
Madison Dearborn Partners, based in Chicago, is a leading private equity investment firm in the United States. For more information, visit www.mdcp.com.
Founded by former executives of Anteon International, CoVant focuses on acquiring and growing companies in the federal technology solutions marketplace. With an experienced team of business executives and a respected board of former government and military leaders, CoVant delivers a unique and highly strategic approach to maximizing company growth and value. Visit www.covant.com for more information.