Alcatel has signed an agreement with the global private equity firm Ripplewood to divest all of its electrical power system activities.
AEG SVS Power Supply Systems, Alcatel Converters, Harmer & Simmons and Saft Power Systems business lines are all to be sold off in the deal. Financial details were not disclosed.
Together, the companies offer a diverse range of services, systems and products (power systems, uninterruptible power supplies, power controllers, converters) that target the transportation, energy and water and telecommunications markets.
Alcatel’s power system activities employ approximately 1300 people in 16 countries and had around 220 million Euros in sales in 2003.
The company says that the move will allow it to focus on its core business, telecommunications systems and solutions.
The transaction is expected to close in the fourth quarter of 2004, subject to regulatory approvals.
In two separate deals, the company said that it has paid $250 million to acquire Spatial Wireless, the Richardson, TX-based developer of distributed mobile switching solutions and $27 million for eDial, the Waltham, MA-based provider of conferencing and collaboration software.