Alcatel buys Genesys for $US1.5 billion

Alcatel SA, the French manufacturer of telecommunications equipment, announced yesterday it is buying US-based software vendor Genesys Telecommunications Laboratories Inc in a stock swap transaction valued at $US1.5 billion.

The deal is based on a $US28 valuation of each Alcatel American Depository Share (ADS), Alcatel officials said. Genesys shareholders will be given 1.667 Alcatel ADS shares for each Genesys share they own, with an agreement that Genesys share values will range between $45 and $55.

The deal is expected to close by January, 2000, Alcatel officials said.

The acquisition of Genesys, a provider of CTI (computer telephony integration) and enterprise interaction management software, is part of Alcatel's plan to expand its electronic business and telecommunications networking systems based on its existing call centre and networking business.

Last March, Alcatel announced it would be cutting 12,000 jobs over two years in response to a flat sales figure of 997 million euros ($A1.6 billion) for the 1998 fiscal year.

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