Connections +
News

Alcatel and Lucent join forces in blockbuster deal

Alcatel and Lucent Technologies Inc. have entered into a definitive merger agreement.


April 3, 2006  


Print this page

Alcatel and Lucent Technologies Inc. have entered into a definitive merger agreement.

The companies say the primary driver of the combination is to generate significant growth in revenues and earnings based on the market opportunities for next-generation networks, services and applications, while yielding significant synergies.

“This combination is about a strategic fit between two experienced and well-respected global communications leaders who together will become theglobal leader in convergence,” said Serge Tchuruk, Chairman and CEO of Alcatel who will become non-executive chairman of the combined company.

“A combined Alcatel and Lucent will be global in scale, have clear leadership in the areas that will define next-generation networks and boast one of the largest research and development capabilities focused on communications.

Patricia Russo, Chairman and CEO of Lucent who will become CEO of the combined company said “the strategic logic driving this transaction is compelling.

“The communications industry is at the beginning of a significant transformation of network technologies, applications and services — one thatis projected to enable converged services across service-provider networks, enterprise networks and an array of personal devices.

The combined company, which will be named at a later date, will have an aggregate market capitalization of approximately Euro 30 billion (US$36 billion), based upon the closing prices on Friday, March 31.

As of December 31, 2005, the combined companies had about 88,000 employees.


Print this page

Related