Lcatel-Lucent on Tuesday announced that it has formally signed and closed 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 for USD$ 200 million,.
The consideration agreed to between Alcatel-Lucent and the Madison Dearborn/CoVant group will comprise a total amount of up to USD$ 200 million, of which 50 per cent is being paid at closing. Up to a further 50 per cent will form a subsequent variable component to be determined on the divested company’s results from operations during the 2014 fiscal year.
The divestment of LGS Innovations LLC forms part of Alcatel-Lucent’s stated commitments to generate at least Euro 1 billion through selective asset sales by the end of 2015.
LGS Innovations LLC provides secure networking, satellite communications, VoIP, optical routers and other solutions for the US national security, defense, and advanced research communities, and has a heritage as a trusted partner of the US Federal Government extending back over 60 years.