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Electronics Production | July 31, 2008

Safran to sell mobile phone unit to Sofinnova

Safran has signed a formal agreement with Sofinnova, providing for the divestment of its mobile phone business under optimum social and financial conditions. The agreement is subject to the approval of employee representative bodies.
Sagem Mobiles will continue to conduct its business until this transaction is completed, which should be by the end of 2008 at the latest.

Drawing on the franchise, brand and technologies contributed by Safran, Sofinnova will create a new mobile phone ODM (Original Design Manufacturer) company. It will develop and market products under other brand names, and on behalf of operators or other manufacturers, as well as for fashion, sports and luxury companies.

The new company will be named Sagem Wireless, and will be based in Cergy-Pontoise, near Paris. Sofinnova will hold a majority stake, while SAFRAN will retain approximately 10%.

Pasquale Pistorio, a well-known leader in the high-tech business sector, has accepted the position of Chairman of the Board.

The new company will have about 310 employees (70 at Cergy-Pontoise and 240 at Ningbo, China), and will call on Esmertec and Purple Labs for the development of its software platforms. Sofinnova is a shareholder in these two companies, which are leaders in their telecommunications software markets. About 250 staff members from Sagem Mobiles’ R&D department will transfer to these two companies, and will stay at Cergy-Pontoise.

The new company will also subcontract mobile phone personalization and packaging operations to the Safran plant in Fougères.

For Sagem Mobiles employees not covered by these transfers, Safran will offer priority redeployment within the Group, primarily in the security and onboard electronics sectors, which are currently enjoying strong growth and require similar qualifications.
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December 12 2018 2:03 am V11.10.8-2