Alcatel sells distribution unit to private US firm

French telecommunication equipment maker Alcatel SA will sell its European enterprise distribution and services business to Los Angeles-based Platinum Equity, a venture capital firm that focuses on buyouts of technology companies, the two companies announced Wednesday.

Alcatel wants to focus on its core business, the development and marketing of networking technology, rather than on distribution, said spokesman Klaus Wustrack, adding that the deal should not disrupt relationships with existing customers, and that service quality will not suffer as a result of outsourcing to partners.

“I really think the customers will benefit from this multichannel approach overall,” he said. “First of all we have a very intensive qualification system, a certification program, for business partners. They have to make an investment, financially and in training themselves. We on the other hand are keeping a strong service organization, with (toll-free) 800 numbers, with everything you need to help service the partners. … It’s not as if the customers won’t be able to talk to us anymore.”

He refused to give financial details of the deal, noting that Platinum Equity is privately held, but added that the distribution business, which serves 400,000 business clients in 17 European countries, brought in revenue of

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Empowering the hybrid workforce: how technology can build a better employee experience

Across the country, employees from organizations of all sizes expect flexibility...

What’s behind the best customer experience: How to make it real for your business

The best customer experience – the kind that builds businesses and...

Overcoming the obstacles to optimized operations

Network-driven optimization is a top priority for many Canadian business leaders...

Thriving amid Canada’s tech talent shortage

With today’s tight labour market, rising customer demands, fast-evolving cyber threats...

Staying protected and compliant in an evolving IT landscape

Canadian businesses have changed remarkably and quickly over the last few...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now