Carlyle Said to Discuss Buying Network Equipment Maker SagemCom From Gores

Gores Group LLC is in talks with Carlyle Group as well as other private-equity firms to sell Sagem Communications, a French provider of network equipment and television set-top boxes, said two people with direct knowledge of the situation.

Gores, a Los Angeles-based private-equity firm, is using Goldman Sachs Group Inc. as a financial adviser on SagemCom, said the people, who declined to be identified because the matter is private. A deal may value SagemCom at as much as 700 million euros ($989 million), they said. Talks are ongoing and an agreement may not be reached.

Gores acquired a majority of Rueil-Malmaison, France-based SagemCom from French aerospace engines maker Safran SA (SAF) in 2008 for an enterprise value of 383 million euros.

Private-equity firms are buying and selling assets again after the financial markets brought deal making to a near halt for two years. Fund managers have led about $79 billion of private equity deals this year, nearly twice the amount in the same period in 2010, data compiled by Bloomberg show.

The sales process is complicated by the fact that some bidders want Gores to retain a minority stake in SagemCom, said one of the people. Gores, which primarily invests in telecommunications and technology companies, is interested in selling all of the asset, said the other person.

Spokeswomen for Carlyle and Goldman declined to comment. A Gores spokesman also declined to comment.

To contact the reporters on this story: Serena Saitto in New York at ssaitto@bloomberg.net; Anne-Sylvaine Chassany in Berlin at achassany@bloomberg.net.

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net

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