The Gores Group, a U.S.-based private equity firm, acquired a 51 percent stake in Siemens Enterprise Communications. The parent company, Siemens AG, maintains a 49 percent ownership interest. In the coming months, Siemens Enterprise Communications business will be merged operationally with two of Gores' portfolio companies -- Enterasys, a network equipment and security solutions provider and SER Solutions, a call center software company.
Gores and Siemens plan to invest at least €350 million in the joint venture - not including expenditures for research and development and other expenditures as part of the ordinary course of business. The investments will be made in order to launch innovative Siemens Enterprise Communications products on the market, acquire other technology platforms to capitalize on the powerful Siemens Enterprise Communications distribution organization and further drive the expansion and transition of the business from a hardware supplier to a software and service provider.
James R. O'Neill has been appointed CEO. He most recently served as CEO of CompuDyne Corporation, a leading provider of products and services to the public security market. CompuDyne is also owned by The Gores Group. Prior to joining CompuDyne, O'Neill served four years as president of Northrop Grumman Corporation's $4.5 billion Information Technology sector.
The companies said products like the OpenScape UC Server will remain an integral part of the portfolio. Support and upgrades for Siemens Enterprise Communications products, especially HiPath 3000 and HiPath 4000, will also be continued.http://www.siemens.com/enterprise/presshttp://www.gores.com
- In February 2006, The Gores Group, in partnership with Tennenbaum Capital Partners, gained control of Enterasys in a private equity buyout valued at approximately $386 million.
