Telecom equipment vendor Alcatel-Lucent has sold its U.S. subsidiary for $200 million.
Alcatel-Lucent in a statement on Friday said its wholly-owned subsidiary LGS Innovations, which offers services to the US Federal Government, was acquired by a US-based company owned by a Madison Dearborn Partners-led investor group that includes CoVant.
The telecom equipment maker sold the U.S.-based subsidiary as part of its The Shift Plan strategy to turn around the business.
Alcatel-Lucent’s The Shift Plan program is aimed at reposition the company as a specialist in IP Networking and Ultra-Broadband Access, while reducing its fixed cost structure by Euro 1 billion and making selective asset sales to generate at least Euro 1 billion by the end of 2015.
Michel Combes, CEO of Alcatel-Lucent, said: “Agreement with Madison Dearborn and CoVant represents the right opportunity for Alcatel-Lucent and LGS Innovations. We wish the LGS team well as they start a new chapter in their long and trusted service to the US Federal Government.”
LGS Innovations’s service include secure networking, satellite communications, VoIP, optical routers and other solutions for the U.S. national security, defense, and advanced research communities.
