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Gores partners with Siemens to invest €350m in joint venture31/07/2008. Source: AltAssets. 
 US private equity firm The Gores Group is to acquire a 51 per cent stake in Siemens Enterprise Communications (SEN), a subsidiary of electronics company Siemens, who will retain a 41 per cent stake in the joint venture. Financial terms of the deal were not disclosed.
Gores and Siemens plan to invest approximately €175m each in SEN, which will be used to launch new products on the market, acquire other technology platforms and also expand the business into a software and service provider, the firm said in a statement.
Gores will also combine SEN with two of the firm's existing portfolio companies: network equipment and security solutions provider Enterasys and call centre software company SER Solutions.
As part of the deal, production facilities in Leipzig, Germany; Curitiba, Brazil and Thessaloniki, Greece, will be transferred to the joint venture, as well as key patents and licences.
Alec Gores, founder and chairman of Gores, said, 'We have been looking for an opportunity to expand our presence in the enterprise networking and communications space and this partnership with Siemens provides the perfect fit.
'Combining the three companies will lead to a more complete enterprise networking and communications offering that will leverage Siemens Enterprise Communications powerful distribution capabilities, global reach and extensive customer base,' he added.
In 2007, SEN recorded revenues of approximately €3.2bn.
In summer 2007, Gores closed its second fund, Gores Capital Partners II, on $1.3bn. The firm targets investment primarily in the technology, industrial, telecommunications and services sectors.
The investment in SEN will be made from both Gores' current funds.
In January of this year, Gores acquired French technology company Sagem Communications for €383m.
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