Siemens, private investor in joint venture
(AP Online Via Acquire Media NewsEdge) FRANKFURT, Germany_Industrial conglomerate Siemens AG is forming a joint venture with U.S.-based private investor the Gores Group involving business software and services, Siemens said Tuesday.,
Under the plan, Gores will own 51 percent of the new business which will include Siemens' Enterprise Communications division. The deal is expected to be closed at the end of Siemens' fiscal year which ends Sept. 30.
The Siemens division provides different business software and services products and had revenues of 3.2 billion euros ($5.1 billion) in 2007.
Siemens said in a statement the two companies would invest a total of 350 million euros ($553 million) in the venture.
The companies want to launch new products, acquire other technology platforms to capitalize on the Siemens distribution organization, and also drive the business from a hardware supplier to a software and service provider.
"We are continuing to intensify the focus of our portfolio on the three sectors, which are energy, industry and health care," said Joe Kaeser, Siemens' chief financial officer.
"In Gores, we have found an extremely experienced technology and telecommunications partner, who strengthens the business. We are confident, that this will benefit the employees and customers in the long term," Kaeser said.
Shares of Siemens were trading down 1.2 percent at 71.65 euros ($113.21) in trading in Frankfurt.
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