Alcatel sells its power systems

Alcatel has agreed to sell all of its electrical power system activities to global private equity firm Ripplewood.

The businesses being sold are AEG SVS Power Supply Systems, Alcatel Converters, Harmer & Simmons, and Saft Power Systems. Power systems, uninterruptible power supplies, power controllers and converters are among the products offered.

Altogether the companies employ around 1300 people in 16 countries and had sales of approximately €220m in 2003.

“With this proposed transaction, we have reached the end of the component activities divestiture program within the framework of focusing on telecommunication solutions,” said Jean-Pascal Beaufret, chief financial officer of Alcatel. “Furthermore, the backing of an investment company will provide the power system activities with increased financial flexibility to strongly support its development.”

Alcatel has also agreed to acquire Spatial Wireless for $250m in shares. The US company specialises in software-based and multi-standard distributed mobile switching.