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Merger: Alcatel Acquisition and Merger with Lucent Corporation

FalconRock-alcatel lucent enterprise

Background

In a significant merger, French telecom company Alcatel acquired Lucent Corporation, an American company and successor of AT&T’s Western Electric and Bell Labs, for approximately $13.4 billion in a stock exchange deal. The combined company was headquartered in Paris, with the merger aimed at creating a stronger presence in the telecom market.

This merger not only strengthened Alcatel-Lucent’s position in the telecom market but also demonstrated the ability to efficiently integrate large-scale acquisitions, driving significant cost savings and operational efficiencies.

Challenges

  • Application Integration: Alcatel had around 450 applications, primarily on Microsoft platforms, while Lucent’s applications were on Linux and other non-Microsoft platforms.
  • Employee Reductions: The merger resulted in significant job cuts, reducing the combined workforce from over 110,000 to around 79,000 employees.
  • Compliance and Data Protection: Ensuring compliance with data protection regulations and maintaining robust security for government and commercial clients.
  • Infrastructure Modernization: Merging and modernizing the IT infrastructure, including dual-native operations with Microsoft and Linux platforms.

Solution

Led implementing a comprehensive plan to address these challenges, including:

  • Application Rationalization: Streamlined the application portfolio, reducing redundancy and integrating Alcatel and Lucent’s applications into a cohesive system.
  • Infrastructure Modernization: Upgraded and merged the IT infrastructure, leveraging both Microsoft and Linux platforms to create a dual-native operation.
  • Compliance and Security: Implemented robust data protection technologies and compliance measures to meet regulatory requirements and secure sensitive information.
  • Organizational Restructuring: Managed the reduction of the workforce and realigned the organizational structure to improve efficiency and reduce costs.

Tangible Outcomes

  • Successful Integration: Achieved a seamless integration of applications and infrastructure, creating a unified IT landscape.
  • Cost Savings: Realized significant cost savings through application rationalization and workforce reduction, optimizing operational efficiency.
  • Enhanced Compliance: Ensured compliance with data protection regulations and enhanced security measures, maintaining trust with government and commercial clients.
  • Operational Efficiency: Established a modernized IT infrastructure, supporting the combined company’s global operations and future growth.