Siemens and private equity firm The Gores Group gave birth to a new contender in the networking space this morning after completing their joint venture transaction.

Gores has acquired a 51 per cent stake in Siemens’ Enterprise Communications arm and over the coming month will merge it with its other two networking businesses – Enterasys and SER Solutions. Siemens retains 49 per cent in the venture.

Gores and Siemens plan to invest at least €350m in the joint venture, excluding expenditures for research and development and other expenditures as part of the ordinary course of business.

In the short-term, Siemens Enterprise Communications will be led by Enterasys chairman and chief executive Mark Stone.

Stone said: “With the closing and the creation of this new entity, we believe the stage is set for this company to become one of the top global players in unified communications with products, services and people that are second to none in the industry.

“Furthermore, we believe the time is right for this new company to experience phenomenal growth, both organically and through acquisitions, and position itself as a major force in the market.”

The duo stressed new Siemens Enterprise Communications products like the OpenScape UC Server will remain an “integral part” of the portfolio. Support and upgrades for other Siemens Enterprise Communications solutions, especially HiPath 3000 and HiPath 4000, will also be continued, they stressed.