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Alcatel-Lucent to sell LGS Innovations for USD 200 mln
2013-12-20 10:31:00| Telecompaper Headlines
(Telecompaper) Alcatel-Lucent announced a definitive agreement to sell its subsidiary LGS Innovations 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, to narrow its focus and reduce costs. The cash transaction agreed between Alcatel-Lucent and the Madison Dearborn/CoVant group will comprise a total amount of up to USD 200 million, of which 50 percent will be paid at closing and up to 50 percent in a subsequent variable component based on the subsidiary's performance in 2014. Closing of the transaction is subject to certain conditions, including US Government approvals, and is targeted to occur in the first quarter of 2014. LGS Innovations provides secure networking, satellite communications, VoIP, optical routers and other solutions for the US national security, defense, and advanced research communities. Madison Dearborn is a private equity firm, while CoVant is a holding company focused on acquiring and growing companies in the federal technology marketplace.
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Category:Telecommunications