Alcatel-Lucent (NYSE: ALU) has finalized the sale of its cybersecurity and security services business to Thales for an undisclosed amount, another move in its effort to shed non-core assets.
In acquiring these assets, Thales will gain 100 new staff members that are mainly based in France and in three other European countries.
While Alcatel-Lucent is selling the unit, it is not turning its back on the burgeoning cyber security trend. In May, the vendor said it would sell its cybersecurity unit to Thales as part of what it says is a broader partnership to address network security opportunities.
The two vendors will combine Thales' experience in cybersecurity services and Alcatel-Lucent's knowledge of security features in its telecom products. Under the terms of this new partnership, the two companies will continue to work together in this area under the new ownership structure.
The new structure provides benefits to both Alcatel-Lucent and Thales alike.
By acquiring these assets, Thales will strengthen its position in cybersecurity, while Alcatel-Lucent will be able to offer its service provider customers end-to-end security solutions by combining its integrated security expertise in telecommunication products with complementary services.
The sale of its cyber-security unit is just one of several moves Alcatel-Lucent has been making under CEO Michel Combes' "Shift Plan" to divest assets as it looks to return to profitability. Besides selling the cybersecurity business, the vendor recently sold its enterprise business to China Huaxin Post & Telecommunication Economy Development Center for $362 million and it has put plans together to take its submarine cable business public.
- see the release
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