Alcatel-Lucent has today announced that China Huaxin has closed a deal for the acquisition of its enterprise arm with cash proceeds of the deal coming to €202m (£157m).
Alcatel-Lucent Enterprise will maintain a minority stake of 15 per cent in a newly formed holding company in France following its divestment.
News of the takeover ends years of uncertainty for the French telecoms firm. Back in 2011 it confirmed it was "exploring [its] strategic options", but it found no takers.
Michel Emelianoff, Alcatel-Lucent Enterprise's chief executive said: "As a ‘new' company our core mission is to help companies transform the way people communicate, harnessing capabilities offered by ever smarter devices and new use models.
"With such a dedicated investor, we now have the ability to execute on our ambition to become an essential player in the enterprise communications market and still be a reference for innovation and user experience," Emelianoff said.
Alcatel-Lucent announced in October 2013 that it would be axing 10,000 employees worldwide as part of an effort to cut €1bn in fixed costs by the end of 2015.
Yuan Xin, president of the industrial investment company China Huaxin said: "We are really excited by the acquisition of Alcatel-Lucent Enterprise. Our long-term investment approach will help Alcatel-Lucent Enterprise deliver on its ambition while enabling us to strengthen our strategic position in the enterprise communications arena."
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