Alcatel-Lucent Announces Sale Of LGS Innovations As Part Of Shift Plan

(RTTNews) - Alcatel-Lucent (ALU) announced it has signed a definitive agreement for the sale of its subsidiary, LGS Innovations LLC, to a US-based company owned by a Madison Dearborn Partners-led investor group that includes CoVant. The divestment is part of The Shift Plan. The cash transaction will comprise a total amount of up to $200 million, of which 50 percent will be paid at closing, and up to 50 percent in a subsequent variable component to be determined on the divested company's results of operations for the 2014 fiscal year.

Michel Combes, CEO of Alcatel-Lucent, said: "We have, under The Shift Plan, made a firm commitment to divesting assets as and when the right opportunity arises for Alcatel-Lucent, and for the assets themselves."

LGS Innovations provides networking, satellite communications, VoIP, optical routers and other solutions for the US national security, defense, and advanced research communities.