Alcatel acquisitions expand US operations

Alcatel has strengthened its telecoms operations in North America by buying a US mobile switching company for $250 million and…

Alcatel has strengthened its telecoms operations in North America by buying a US mobile switching company for $250 million and a US conferencing technology business for $27 million.

The Paris-based telecoms equipment provider said it planned to pay for mobile switching company Spatial Wireless in American Depositary Shares, with the exchange ratio to be determined after closing the transaction.

It added it would settle the acquisition of conferencing technology firm Edial in cash and shares but did not provide any more details.

The deals are part of the company's strategy to increase its focus on core telecom activities and divest non-core operations to strengthen its balance sheet.

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Alcatel also announced today it had agreed to sell all of its electrical power system activities to private equity firm Ripplewood but did not disclose the terms of the sale.