Boldly going

Alcatel and Finmeccanica are to merge their space activities and create two joint ventures to which they will contribute their respective satellite and service activities.

The first company, Alcatel Alenia Space, of which Alcatel will hold 67% and Finmeccanica 33%, will combine Alcatel Space and Alenia Spazio’s activities. It will concentrate on the design, development, and manufacturing of space systems, satellites, payloads, instruments and associated ground systems for civilian and military applications.

The headquarters of Alcatel Alenia Space will be located in France, with plants in France, Italy, Belgium and Spain. It will have estimated 2004 sales of 1.8 billion Euros and employ around 7,200 people.

The second company, Telespazio, of which Finmeccanica will hold 67% and Alcatel 33%, will combine Telespazio with Alcatel Space Services and Operations activities. It will concentrate on operations and services for satellite solutions, which includes control and exploitation of space systems as well as value-added services for networking, multimedia and earth observation.

Its headquarters will be located in Italy with plants in Italy, France and Germany. With estimated 2004 sales of 350 millions Euros, it will employ around 1,400 people.

The completion of the deal is expected during 2005, subject to necessary approvals by regulatory authorities.

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