Marconi today announced that it has reached agreement to sell its Data Systems subsidiary to Danaher Corporation for US$400 million in cash. The transaction, which is subject to regulatory approvals, is expected to close before March 31, 2002, the end of Marconi’s financial year.
The proceeds will be used to reduce Group net debt.
‘This transaction represents a significant further step towards Marconi’s stated objective of maximising cash proceeds from non-core asset disposals and further helps the Marconi management team to apply focus and commitment towards our core communications business,’ said Marconi Chief Executive, Mike Parton.
Marconi Data Systems, headquartered in Wood Dale, Illinois, is a supplier of digital, non-contact industrial ink jet printers, graphics, laser and postal printing systems and field services, spare parts, fluids and accessories.
During the six month period ended September 30th, 2001, the company contributed sales of £103 million and profits, before interest and tax, of £11 million in the Group’s consolidated accounts. For the 12-month period ended March 31, 2001, the company contributed sales of £239 million and profits, before interest and tax, of £48 million.
The value of the Marconi Data Systems’ net assets was £93 million as at September 30th, 2001.