Alcatel-Lucent has agreed to sell Genesys – its customer-service software and contact-center solutions business – to European private-equity firm Permira for $1.5 billion (U.S.).
The deal is expected to close by the end of the year or in early 2012, but still must be reviewed by the Committee on Foreign Investment in the United States (CFIUS) and get approvals in various countries.
Genesys, which sells its products to enterprises, reported 2010 sales of approximately $500 million. A deal with Permira would mean the transfer of the approximately 1,800 employees worldwide, the management team and the existing business structure to ensure seamless continuity with customers and other stakeholders.
“We have now positively concluded our evaluation of strategic options for both our Enterprise and Genesys businesses," said Ben Verwaayen, CEO of Alcatel-Lucent. “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, Permira partner. “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 Enterprise would continue to enjoy a strong commercial relationship, Al-Lu said, with a joint development agreement and the two businesses continuing to have access to each other’s product portfolios.
