Siemens sold an 80.2% stake in its cordless phone unit to fellow German firm ARQUES Industries, cementing its departure from the telephone business, an Associated Press report said.
The deal, financial details of which were not disclosed, will transfer the stake of Siemens Home and Office Communication Devices (SHC) to ARQUES on October 1, the companies said in a joint release.
SHC, which was made a stand-alone company by Siemens in 2005, produces cordless phones, as well as broadband and home entertainment devices. Revenue in fiscal 2007 was â‚¬792 million, and two-thirds of its sales were generated by Gigaset cordless phones, the Associated Press report said.
Siemens said spinning off the unit will allow it to continue its 'strategy of focusing on the three sectors: Energy, Industry and Healthcare.'
ARQUES, headquartered in Starnberg, near Munich, specializes in acquiring noncore activities from companies in order to develop them into businesses with sustainable profitability.
SHC is already the top producer of cordless phones in Europe and a leading supplier worldwide.
ARQUES said it hoped to expand the company's position as a 'market leader in the premium price segment' and focus on high-margin business.
Under the terms of the deal, ARQUES can continue to market products under the Siemens brand name for the next two years.