LGS Innovations has been an independent company for about 15 months now and while it was experiencing growth when it was part of Lucent-Alcatel the change in its ownership has made a big difference for the company.
Lucent-Alcatel sold LGS Innovations to the private equity groups Madison Dearborn and CoVant for $200 million in April 2014.
Since then the company has continued to do many of the same things, namely doing research and development work in cybersecurity, photonics and radio frequency and cellular technologies. It also has a professional services unit focused on networks and wireless solutions. And the company is an exclusive reseller of Alcatel-Lucent products in the public sector.
While company CEO Kevin Kelly declined to talk revenue figures, LGS has been growing. Its head count has gone from 670 people at the time of the sale to 800 and they have 100 openings.
“We aren’t in the staffing business but that growth in headcount is indicative to the growth we’ve experienced under our new owners,” he said.
The ownership change has been critical to the company’s accelerated growth.
“Under Alcatel we weren’t core. We were just one of their holdings,” he said.
But that’s not the case with Madison Dearborn and CoVant. “They have much more of an investment model. We are a core business to them,” Kelly said.
That change means that profits are reinvested in the company, which means new products and new offerings. And eventually, new acquisitions.
“You could just as easily take the profits and divvy them up among the owners, but they want us to reinvest, which will make us more formidable,” he said.
Key areas of investment include wireless technologies, photonics, and cybersecurity.
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