China Huaxin Acquires Alcatel-Lucent Enterprise Business

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Entering into a new era of long-term growth trajectory, Alcatel-Lucent has announced that it has successfully closed a transaction with China Huaxin Post & Telecommunication Economy Development Center (“China Huaxin”) for the divestment of its Enterprise division. Cash proceeds to Alcatel-Lucent are Eur 202 million.

Following the divestment, Alcatel-Lucent will maintain a minority stake in a newly-formed holding company, incorporated in France. Alcatel-Lucent Enterprise will also continue to work with Alcatel-Lucent on a privileged business relationship basis.

The transaction will now enable Alcatel-Lucent Enterprise to benefit from a strong and recognized investor, providing the means and resources necessary to strengthen its ambition including leadership positions in enterprise communications while accelerating investment in new areas of net growth.

Alcatel-Lucent Enterprise will continue to invest and innovate in the core markets where it is already recognized as an undisputed leader, namely enterprise communications and networking – while exploring new market opportunities in select, high-growth countries, vertical solutions and cloud services.

At the same time, the business will work to define new opportunities aimed at growing the company into a leading player in next-generation enterprise communications, enabling an innovative shift from a pure technology-centric to outcome-based delivery model, capable of delivering measurable benefits from both an economical and human perspective for its partners and customers.

Commenting, Michel Emelianoff, Chief Executive Officer, Alcatel-Lucent Enterprise said: “As a ‘new’ company our core mission is to help companies transform the way people communicate, harnessing capabilities offered by ever smarter devices and new use models. We see success as creating long term value and customer relevancy by delivering business outcome to customers and partners through technology and business innovations. With such a dedicated investor, we now have the ability to execute on our ambition to become an essential player in the enterprise communications market and still be a reference for innovation and user experience.”

Yuan Xin, President, China Huaxin :”We are really excited by the acquisition of Alcatel-Lucent Enterprise. Our long-term investment approach will help Alcatel-Lucent Enterprise deliver on its ambition while enabling us to strengthen our strategic position in the enterprise communications arena. Alcatel-Lucent Enterprise has very strong assets and a recognized leadership in many markets across the globe. We are looking forward to leveraging our investment capabilities and experience to bring this business to the next level, both in size and market outreach.”

Alcatel-Lucent Enterprise will have its headquarters in Colombes near Paris, France, with over 2,700 employees worldwide and with operations in more than 80 countries.

China Huaxin Post & Telecommunication Economy Development Center (“China Huaxin”) is an industrial investment company that seeks long-term commercial growth opportunities in the Information and Communications Technologies (ICT) sector.


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TelecomDrive Bureau covers the latest developments happening in the space of communications, devices and innovations in targeted geographies of India, SAARC, Asia Pacific, Middle East and Africa regions.TelecomDrive Bureau is headed by Zia Askari. He can be reached at ziaaskari@telecomdrive.com