The Carlyle Group Completes The Acquisition Of High-Technology Group Sagemcom from The Gores Group
August 17, 2011
Paris, August 17, 2011 – Global alternative asset manager The Carlyle Group (“Carlyle”) announced today that it has completed the acquisition of Sagemcom, a global high-technology group specializing in broadband communications and energy activities, from The Gores Group. Carlyle is investing through Carlyle Europe Partners III (CEP III), a €5.4 billion buyout fund focused on investment opportunities in Europe, and owns 70% of Sagemcom whilst management and employees hold the remaining 30%. Further financial terms of the transaction were not disclosed.

Sagemcom is a European manufacturer of high-end digital TV set-top boxes, very high speed broadband residential terminals and advanced electricity meters, as well as various other telecommunications products. Sagemcom has more than 6,000 employees worldwide, and posted sales of €1.4 billion in 2010. The Company holds strong market positions in all its activities and has expanded significantly in its core markets for the last three years.

Benoît Colas, Managing Director, The Carlyle Group, declared, "We are very excited to be the new majority shareholder in Sagemcom alongside its talented management team and employees. Sagemcom has an excellent track record in winning new customers and growing revenues in a competitive market. This demonstrates its commitment to customer relationships, technological innovation and superior time-to-market capabilities. We believe the team, led by Patrick Sévian, will be able to capture the tremendous growth opportunities ahead of us, notably in the broadband and energy markets. Carlyle’s deep telecom industry expertise and financial strength will be great resources for the future development of Sagemcom."

Fernando Goni, Managing Director of The Gores Group, said, “We want to thank the Sagemcom team for their hard work in building and growing such a successful business over the past few years. We enjoyed working with the team in Paris and are proud to have enabled the Company to achieve this successful track record. We are confident that Sagemcom will continue to flourish and wish management and Carlyle success.”

Patrick Sévian, President of Sagemcom said, "We are very excited by the partnership we have built with Carlyle as we believe this will enable us to consolidate and strengthen the ambitions of Sagemcom, both through organic growth and acquisitions. In addition, we are proud that The Carlyle Group, a leading global institution in private equity, shares our employee ownership culture, which we consider as one of the engines of our dynamism, and which has been increased from 25 to 30% under the new structure.”

About Carlyle

The Carlyle Group is a global alternative asset manager with $107.6 billion of assets under management committed to 84 funds as of March 31, 2011. Carlyle invests across three segments -- corporate private equity, real assets and global market strategies – in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 990 people in 19 countries. Web: www.carlyle.com ; Case Studies: www.carlylegroupcreatesvalue.com; Video: www.youtube.com/OneCarlyle

About The Gores Group

The Gores Group, founded by Alec E. Gores in 1987, is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital. Since its inception, Gores has acquired 80 companies worldwide with combined revenues in excess of 15 billion dollars. Currently, Gores has 4 billion dollars in equity under active management. Gores’ offices in North America and Europe serve its active investment programs in these regions. For more information, see: www.gores.com

About Sagemcom

A French high-technology group with an international dimension, Sagemcom operates on markets of broadband (digital home, digital set-top box, broadband and residential terminals), telecom and energy (M2M, telecommunications infrastructure, smartgrid and metering), and management of documents (printing terminals, software and solutions, digital production workflow). With a turnover of over €1.4 billion, Sagemcom employs 6 000 people on five continents; already a European leader in most of its key markets, Sagemcom aims to become a world leader in high added value communicating terminals. Sagemcom is strongly committed to sustainable development through the life cycle of its products: eco-design, energy consumption, ethical code of all its suppliers. Sagemcom has been also awarded the Customer Service Award for years 2009, 2010 and 2011 in the Telecommunication products category. For more information, see: www.sagemcom.com

Press contacts

The Carlyle Group

Rosanna Konarzewski
+44 (0)20 7894 1632
rosanna.konarzewski@carlyle.com

The Gores Group

Frank Stefanik
+1 310 209-3010

Sagemcom

Aurore Chiquot
+33 1 53 32 11 83
aurore.chiquot@linkrp.eu

Vincent Samuel
+33 1 53 32 11 85
vincent.samuel@linkrp.eu