Telecommunications manufacturer Alcatel has signed an agreement with Bluegum Technology to outsource its fabrication activities in Liverpool. The deal, worth a cool $250 million, places Bluegum among the top 15 electronic manufacturing companies in the world.
Bluegum estimates its annual revenue will exceed $500 million as a result of the transaction. The Liverpool manufacturing operation will transfer to Bluegum on September 1 this year. The deal includes a three-year renewable contract of Alcatel telephones, switches and network access products.
Under the agreement, existing operations and management will remain, providing a "seamless transfer" of current management and 400 employees to Bluegum, said Bluegums CEO Paul Zuber.
Bluegum Technology purchased IBM's Wangaratta plant in November last year and exports products to more than 20 countries.