5 August 2002 -- Marconi plc has sold its Strategic Communications business Marconi Mobile Holdings SpA to Italian company Finmeccanica SpA for EUR614m.
The completed sale is not conditional on any approvals or consents. The proceeds, received today in the form of cash and in debt assumed by Finmeccanica, have had the effect of reducing Marconi's net debt.
Mike Parton, Marconi chief executive, said: "We have achieved a positive outcome for Marconi and for Strategic Communications. Finmeccanica will be an excellent home for the business, its customers, management and employees."
Strategic Communications designs, manufactures and supplies communications and information systems, primarily for defence and security applications, including ground, naval, avionic communications/command and control systems. The company employs approximately 4,000 people in Italy, UK, Germany and Turkey and, in the year to 31 March 2002, had sales of approximately EUR502m.
In the same period, the Strategic Communications business made an operating contribution to Marconi plc's profits, before exceptional items, of approximately EUR49m. The business had assets of EUR328m.
The sale of Marconi Mobile Holdings SpA does not include Marconi's Public Mobile Radio and Private Mobile Radio business units, which were earlier demerged from Marconi Mobile Holdings.