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Done deal: Alcatel-Lucent Enterprise sold

03 Oct 2014

Alcatel-Lucent has sold its enterprise division to China Huaxin Post and Telecommunication Economy Development Center for EUR202 million.

The China Huaxin investment firm takes an 85% stake, with Alcatel-Lucent maintaining a 15% minority stake in the newly-formed holding company, incorporated in France.

Alcatel-Lucent Enterprise says the move heralds 'a new era' for the company and puts it on 'a long-term growth trajectory'. The company will continue to work with Alcatel-Lucent 'on a privileged business relationship basis'.

Plans for the divestment of the enterprise division were first announced in February, ending speculation that the French telecommunications and networking company would rid itself of the business.

The company says competing in the enterprise communications market requires investment and critical mass – something it says is now possible because of Huaxin's investment.

“The transaction will now enable Alcatel-Lucent Enterprise to benefit from a strong and recognised investor, providing the means and resources necessary to strengthen its ambition, including leadership positions in enterprise communications while accelerating investment in new areas of net growth,” Alcatel-Lucent Enterprise says.

“This new partnership will enable us to achieve our objective of being a significant competitor in the markets we address.”

The company says it will continue to invest and innovate in its core markets of enterprise communications and networking markets, while exploring new market opportunities in select, high-growth countries, vertical solutions and cloud services.

“At the same time, the business will work to define new opportunities aimed at growing the company into a leading player in next-generation enterprise communications, enabling an innovative shift from a pure technology-centric to outcome-based delivery model, capable of delivering measurable benefits from both an economical and human perspective for its partners and customers.”

It adds that its indirect sales model and investment in research and development remains 'unchanged'.

“We are committed, more than ever, to helping businesses embrace new uses and models through solutions for next-generation communication platforms and intelligent networks, from the office to the cloud.”

Michel Emelianoff, Alcatel-Lucent Enterprise CEO, says with a 'dedicated investor' the company now has the ability to execute on its ambition to become an essential player in the enterprise communications market and still be a reference for innovation and user experience.

“Today, Alcatel-Lucent Enterprise is a new company. We are an independent, stable, mid-sized business with strong existing assets and 2700 talented employees who possess the energy and passion of a startup,” the company says.

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