Alcatel-Lucent announced today that it has received a binding offer of $1.5 billion from a company owned by private equity firm Permira for the acquisition of its Genesys Telecommunications Laboratories business. Alcatel-Lucent plans to retain the rest of the Enterprise Business Unit, of which Genesys was a part.
The transaction is subject to review by the Committee of Foreign Investment in the United States and other customary regulatory approvals, and consultations in various countries. It would be expected to close by the end of 2011 or beginning of 2012.
Genesys, which reported 2010 sales of approximately $500 million, is a recognized leader in customer service software and contact center solutions for enterprises. Under the new ownership, Genesys will continue to enhance its core product portfolio and strengthen its offering in the growing areas of cloud computing, analytics, workforce optimization, process workflow, and social engagement.
Genesys is headquartered in Daly City, Calif., and has more than 45 offices worldwide. Its software directs more than 100 million customer interactions every day for 4,000 companies and government agencies in 80 countries.
The deal would include the transfer of Genesys' approximately 1,800 employees worldwide, the management team, and the existing business structure to ensure seamless continuity with customers and other stakeholders.
Ben Verwaayen, CEO of Paris-based 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 unified communications and data networking with them."
"Genesys is widely recognized as one of the world's leading providers of customer service software and contact center solutions, and we are excited by the long-term growth potential of this business," said Brian Ruder, a partner at Permira, which is based in England. "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."
Genesys and Alcatel-Lucent's Enterprise unit will 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.