Alcatel, Finmeccanica Join Forces To Create New European Satellite Companies
Paris and Rome -- Alcatel and Finmeccanica today announced the signing of a final agreement to merge their space activities through the creation of two joint ventures companies, to which both partners will contribute their respective satellite industrial and service activities.
The first company, Alcatel Alenia Space, of which Alcatel will hold 67% and Finmeccanica 33%, will combine Alcatel Space and Alenia Spazio's activities. It will concentrate on the design, development, and manufacturing of space systems, satellites, payloads, instruments, and associated ground systems for civilian and military applications. The headquarters of Alcatel Alenia Space will be located in France, with plants in France, Italy, Belgium, and Spain. It will have estimated 2004 sales of 1.8 billion euros and employ around 7,200 people.
The second company, Telespazio, of which Finmeccanica will hold 67% and Alcatel 33%, will combine Telespazio with Alcatel Space Services and Operations activities. It will concentrate on operations and services for satellite solutions, which includes control and exploitation of space systems as well as value-added services for networking, multimedia, and earth observation. Its headquarters will be located in Italy with plants in Italy, France, and Germany. It will have estimated 2004 sales of 350 million euros and employ around 1,400 people.
The two groups have decided to combine their respective space businesses to consolidate significant operational synergies and economies of scale (mainly in R&D, product development, procurement policy, and increased industrial efficiency), which will improve these businesses operating profitability by several points and will be realized progressively, in line with business cycles.
The management team for each company will be appointed in the coming weeks.
Alcatel and Finmeccanica will account for Alcatel Alenia Space and Telespazio using proportional consolidation. Alcatel and Finmeccanica will have a cash/debt impact of 109 million euros for the two companies respectively, at the closing date.
The completion is expected during 2005 subject to necessary approvals by regulatory authorities.
Source: Alcatel and Finmeccanica