Dallas, Texas 05/27/2014 (FINANCIALSTRENDS) – Alcatel-Lucent (NYSE: ALU) is now talks to sell-off its cyber security-unit to Thales as a part of what the company says is a much broader partnership to effectively address the network security opportunities. This possible agreement, would include transfer of ALU’s network security assets off to Thales, and would also allow the former to expand the position in this cyber security segment, which is 1 of the tenets of Michel Combes, the CEO’s Shift Plan. This vendor would then be able to offer the new as well as existing customers the suite of security solutions which combine the integrated security expertise in tele- com products with the complementary services that are provided by Thales.
Both Companies Benefit
In the meantime, Thales would also be able to grow the cyber security business.ALU said that this partnership is subject to the final definitive-agreement and that it will also become effective after consultation of the representative bodies, the execution of definitive -agreements and in obtaining necessary permissions. Today, Alcatel-Lucent (NYSE: ALU) runs the company’s cyber security services & communications-security activities in 3 sites in France- at Villarceaux, near Paris, and Toulouse & or vault that is near Nantes—as well as in 3 other European countries (Germany, and Belgium & UK).
The Broader Plan
This potential sale of its cyber security division is part of the broader plan that Combes had embarked on in 2013, to sell $1.37B in assets to turn ALU around by 2015-end. For example, in 2013 Dec the company sold its public-sector subsidiary- LGS Innovations off to Madison Dearborn Partners & CoVant for $200M. Paris-based Alcatel-Lucent competes with Ericsson (ERICb.ST) of Sweden, China’s Huawei HWT.UL & Finland’s Nokia has not posted any kind of regular profits since the time it was created in the trans-atlantic merger in the year 2006, and was hampered by the relatively small-size in mobile & by the tough competition with it slow-cost rivals.