Alcatel-Lucent prepares to part ways with Genesys

$1.5bn sale to Permira is expected to close by early next year if approved

Alcatel-Lucent has confirmed it has received a binding offer of $1.5bn (£949m) for the sale of its Genesys business.

The deal, with a company owned by the Permira funds, is subject to review by the Committee on Foreign Investment in the US and is expected to close by the beginning of 2012. The $1.5bn would be paid in cash on a debt/cash-free basis.

Genesys posted 2010 sales of about $500m, and the deal would include the transfer of approximately 1,800 employees globally, the management team and the existing business structure.

Ben Verwaayen, chief executive of Alcatel-Lucent, said: “We have now positively concluded our evaluation of strategic options for both our Enterprise and Genesys businesses. Permira’s intended acquisition of Genesys would enable this profitable business to flourish further; with Enterprise we have reached the conclusion that retaining it and strengthening it further serves Alcatel-Lucent and our customers best.

“Our chosen direction is to leverage the natural connections that exist between Enterprise and carrier customers, and proactively apply Enterprise’s strengths and momentum in UC and data networking with them,” he added.

Brian Ruder, Permira partner, said: “Genesys is widely recognised as one of the world’s leading providers of customer service software and contact centre solutions, and we are excited by the long-term growth potential of this business. With an exceptional brand, differentiated technologies and a blue-chip customer base, Genesys is well positioned to continue to take advantage of the positive trends in its expanding markets.”

The firms said Genesys and Enterprise would continue to enjoy a "strong commercial relationship" with a joint development agreement and the two businesses continuing to have access to each other’s product portfolios.