Lucent Technologies announced yesterday, November 13, 2000, that it has agreed to sell its Power Systems business to Tyco International Ltd, a diversified manufacturing and service company, for $2.5 billion in cash.
The sale, which is subject to regulatory approval and other customary closing conditions, is expected to close by December 31, 2000 and will result in a one-time gain to be recorded as an extraordinary item, net of tax, on Lucent’s income statement.
‘As Lucent focuses on the broadband and mobile Internet markets, we recognised that the Power Systems business, and its employees, will be best positioned for future success in a company serving the electronics and power industries,’ said Bill O’Shea, executive vice president, corporate strategy and business development at Lucent Technologies.
‘Our goal was to find the right buyer, and we are very pleased that Tyco recognised the value of Lucent’s Power Systems business and its talented people. We look forward to an ongoing relationship with Tyco and Power Systems under the multiyear supply agreement to purchase Power Systems products.’
More on the web: www.lucent.com.