Alcatel-Lucent (NYSE: ALU) has sold the company’s government technology subsidiary LGS Innovations to two U.S. investment firms for around $200 million in a move that will enable LGS to chase market and customer opportunities that it may not have been able to previously go after under Alcatel, LGS CEO Kevin Kelly told PCWorld Friday.
Stephen Lawson writes Chicago, Ill.-based Madison Dearborn and McLean, Va.-based CoVant acquired LGS and the firm’s almost 700 employees will work under the new management.
The companies intend for the acquisition to address technology requirements of state and local government clients, public safety agencies and foreign governments, according to the report.
Kevin Kelly, LGS chief executive, told PCWorld LGS’s patented technologies span from data compression systems to network reconnaissance tools.
LGS was formed when France-based Alcatel merged with U.S.-based Lucent in 2006 and the company has been operating as an independent firm in order to protect classified information under the rules of the Committee on Foreign Investment in the United States, PCWorld reports.