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Alcatel-Lucent sells government products unit for up to $200M

  • Alcatel-Lucent (ALU -1.3%) is selling LGS Innovations, a subsidiary that provides secure wireline/wireless networking hardware, network management/analytics software, and related services to U.S. federal agencies, to an investor group led by P-E firm Madison Dearborn for up to $200M in cash.
  • Alcatel will be paid $100M up-front, and will receive additional payments (up to $100M) based on LGS' 2014 performance. The deal is expected to close in Q1 2014.
  • The sale is part of Alcatel's efforts to unload €1B ($1.37B) in assets by 2015. Reuters reported last month Alcatel is thinking of selling its struggling enterprise hardware/software ops, and has hired Lazard to help find a buyer.
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