Some good news on head count reduction: Lucent Technologies Sells Enterprise Professional Services Business
INS has been a losing money operation for a long time. With the recent ongoing layoffs and INS (I think they had about 7,000?), we are looking at about 12-15,000 cuts which should lower LU's break even by another billion or more. JMHO.
datekrt.newsalert.com
Lucent Technologies Sells Enterprise Professional Services Business
PR Newswire - July 03, 2002 08:31
- Independent professional services firm to be called International
Network Services and focus on enterprise customers
- Lucent focuses its professional services business on core service
provider customers
MURRAY HILL, N.J., July 3 /PRNewswire-FirstCall/ -- Lucent Technologies (NYSE: LU) today announced that it has entered into a definitive agreement to sell the enterprise portion of its professional services unit to International Network Services Inc.(INS), a recently created, wholly-owned subsidiary of West Coast Venture Capital, LLC, a private venture capital firm based in Cupertino, Calif.
As part of the agreement, INS will retain the existing management team of Lucent's Enhanced Services and Sales division (ESS) and establish an independent professional services company focused on the design, integration and operation of enterprise networks. Lucent, which had already integrated the consultants for its service provider customers into Lucent Worldwide Services, will continue providing networking professional services to its core service provider customers.
Terms of the agreement are not being disclosed. The transaction, which is subject to customary closing conditions, is expected to be completed by the end of July.
David Butze, currently president of Lucent's ESS division, will be named president and chief executive officer of the new company. ESS was formerly part of International Network Services, a company Lucent acquired in 1999.
"Moving on independently makes strategic sense for our employees and our customers, who will benefit from a company solely focused on their complex, enterprise networking needs," Butze said. "I look forward to building this business with the historically strong culture and multi-vendor technologies that have supported the needs of our clients. As INS, we will retain the strong engineering and consulting talent that was the basis of this company's original success."
"This announcement marks another piece of Lucent's strategy to focus its products and portfolio on the world's largest communication service providers," said Bill O'Shea, Lucent's executive vice president, Corporate Strategy and Marketing. "Lucent will continue to have the industry's premier professional services team in place to do large-scale consulting and design work for our service provider customers, while the enterprise professional services team will be able to position itself for success on its own."
The new INS, which will be headquartered in Santa Clara, Calif., will continue providing industry-leading networking solutions to its enterprise customers, including some of the world's top financial services, pharmaceutical, aerospace, energy and transportation companies. The company has a reputation for strong multi-vendor expertise based on its design of thousands of solutions across all major enterprise networking technologies and products. The company will provide network consulting and design services to customers in major markets across North America and Europe.
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers networks for the world's largest communications service providers. Backed by Bell Labs research and development, Lucent relies on its strengths in mobility, optical, data and voice networking technologies as well as software and services to develop next-generation networks. The company's systems, services and software are designed to help customers quickly deploy and better manage their networks to create new, revenue-generating services that help businesses and consumers. For more information on Lucent Technologies, visit its Web site at lucent.com .
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SOURCE Lucent Technologies
/CONTACT: Mary Ward, +1-908-582-7658, maryward@lucent.com, or Pete
Settles, +1-908-582-2198, psettles@lucent.com, both of Lucent Technologies; or
Elvin Ambler of INS, +1-650-318-1218, ambler_e@ins.com/
/Web site: lucent.com / |
