PARIS Seeking to refocus its activities into aeronautics, French electronics, communications and defense group Safran announced it is in discussions with private equity group The Gores Group LLC (Los Angeles, California) to sell its Sagem Communications division. The transaction amounts to 383 million ($552 million).
Under the terms of the agreement, The Gores Group will become majority shareholder and will be joined by minority shareholders including Safran and a group of employees.
Sagem Communications offers broadband and convergence solutions, including printing terminals, digital TV set-top boses, broadband and residential terminals and telecom systems and partnerships. The company counts 6,500 employees and reported revenues of 1.3 billion ($1.8 billion) in 2006.
Both parties said they expect to finalize the transaction in the coming months following consultancy with corporate and employee entities and receipt of the required administrative authorizations.
We sought a solution that would ensure the best possible future for Sagem Communications and its employees, and would also protect the interests of its customers and of SAFRAN shareholders, declared Safran CEO Jean-Paul Herteman. The Gores Group provided the best guarantees from this point of view. And with this new shareholding structure, Sagem Communications will enjoy the conditions for further growth that it deserves.