The Gores Group Completes Acquisition of Sagem CommunicationsTuesday, January 29th, 2008
LOS ANGELES — The Gores Group, a leading U.S. investment firm, announced today that it closed its acquisition of Sagem Communications from SAFRAN for an enterprise value of 383 million euros (560 million dollars at current exchange rate).
Sagem Communications is one of France’s premier technology companies specializing in broadband communications and convergence activities. Products include digital TV set-top boxes, broadband residential terminals, printing terminals and telecom systems and partnerships.
The Gores Group will be majority shareholders of Sagem Communications, with a minority share of the capital held by management and a group of employees, SAFRAN, CIC Finance and Club Sagem. Closing of the deal followed consultations with all unions, and the receiving of necessary approvals from French and European authorities.
Sagem Communications has 6,500 employees worldwide, and posted sales of 1.2 billion euros in 2007.
“Sagem Communications is already a leader in each of its business lines, having combined stellar research and development with solid customer relationships,” said Steve Yager, Senior Managing Director, The Gores Group. “The company is on the cusp of the global explosion in television technology and broadband, making this one of the most exciting acquisitions we have ever made. We are long-term, value investors and Sagem Communications fits perfectly into our strategy.”
Patrick Sevian, CEO of Sagem Communications, said, “The Gores Group can provide Sagem Communications with the resources needed to develop its business and seize current marketing opportunities, enabling it to reach critical mass and play a top-tier role in the global market.”