Alcatel-Lucent to sell enterprise biz to China Huaxin in €268 million deal

Alcatel-Lucent on Thursday said it received €268 million deal offer for its enterprise business from China Huaxin, a technology investment company.

In a statement said the telecom equipment vendor said it receive binding offer from China Huaxin, a technology investment company, for the acquisition of Alcatel-Lucent Enterprise, valuing Alcatel-Lucent Enterprise at €268 million for 100 percent on an enterprise value basis.

Alcatel-Lucent will retain a 15 percent minority interest in its enterprise business.

Alcatel-Lucent does not share revenue of its enterprise business.

Shortly before year-end the Group announced it had signed an agreement for the sale of LGS for up to $200 million.

Alcatel-Lucent enterprise biz

The proposed transaction will be submitted to the workers councils of Alcatel-Lucent Enterprise for the required information and consultation procedures. A definitive acquisition agreement is expected to be signed during the second quarter of 2014.

Closing would be subject to certain conditions, including the approval of certain regulatory authorities, and is targeted to take place in the third quarter of 2014.

According to Alcatel-Lucent, revenues in the other segment, essentially formed by LGS and enterprise, were €232 million, a decrease of 10.1 percent compared to €258 million in Q4 2012 and a 1.8 percent increase compared to €228 million in Q3 2013.

The segment posted an adjusted operating income of €12 million or an operating margin of 5.2 percent compared to an adjusted operating income of €7 million or a margin of 2.7 percent in Q4 2012.