Liveblogging Siemens Press ConferenceLiveblogging Siemens Press Conference

9 AM Eastern: Press conference is under way; they're doing it from Munich, in English. Joe Kaeser, CFO of Siemens AG, opens it up. "We were not interested in a quick sale." Gores Group has majority stake in new joint venture. Gores assumes managerial responsibilities; Siemens has 2 board seats and super-majority rights. JV will have right to use Siemens logo. Investment will be to acquire technology providers and facilitate the transition from hardware to software.

9 AM Eastern: Press conference is under way; they're doing it from Munich, in English.

Joe Kaeser, CFO of Siemens AG, opens it up. "We were not interested in a quick sale."

Gores Group has majority stake in new joint venture. Gores assumes managerial responsibilities; Siemens has 2 board seats and super-majority rights.

JV will have right to use Siemens logo.

Investment will be to acquire technology providers and facilitate the transition from hardware to software.9:10 AM Eastern: Siemens products have been "ahead of the pack", "we have second largest installed base in the world," repeats for emphasis: "the second largest installed base in the world."

SEN shifted R&D investment from old technology to new software and IP-based communications. Almost 80% of R&D spending goes into UC and open communications; only 18% for traditional telephony, down from 50% a few years ago.

#1 in Europe--17%, Latin America, India; 5% share in U.S.--"Alec, we count on you to get that up."

"SEN is ready for a fresh, debt free start."

Why Gores Group?

"Responsibility." Wanted partner who'd continue business. "We were looking for a partner who was willing to make a long-term commitment to the business, and was willing to actively shape the consolidation" in the industry.

Gores has strong track record in turning around tech companies.

Third value is innovation. Grow products and synergetic companies.

Summary: Provide solid balance sheet to JV; shield from near future risks. "Substantial financial impact" on Siemens AG.

Siemens Enterprise/JV is "Debt free and cash rich, financially well-suited for its case."

"The time of uncertainty and anticipation has come to an end for our customers and our employees."

9:15 AM: Alec Gores, CEO of Gores Group

Gores looking at Siemens for 2 years.

GG specialty has been buying divisions from companies that aren't core to the company. 70 companies bought; none failed, no lender or bank has taken a loss on their transactions.

"I felt very strongly we were the only guys who could do this [SEN deal]...It took Joe [Kaeser] 2 years to figure this out [joke]."

9:18 AM: Steve Yager, Senior Managing Director, Gores Group

Turned Enterasys around in 60 days; it's been growing, adding jobs, making profits ever since. Siemens is already a large Enterasys customer; resell Enterasys products in Germany. "Excellent opportunity for Siemens to sell those products globally."

SER: Specializes in outbound call center software. Nortel OEMs SER product.

"Our theme has always been a strong #2 to Cisco."

9:25 AM: Mark Stone, Senior Managing Director, the Gores Group

Cites Siemens' "Very trusted and very very loyal customer base" and outstanding management team.

Focus on organic growth coupled with "very strategic acquisitions."

Stone will be chairman and, as necessary, interim CEO of the JV. Interviewing internal and external candidates. Hope to have CEO by time deal closes September 30.

9:28 AM: Q&A

How much is Gores paying? How much debt does Siemens take on from SEN? And why did it take so long to come to a deal?

Kaeser: "I'm not sure why it is perceived to be complicated." They weren't going to just jump into something w/o restructuring SEN first.

Hand over company debt free, "substantial pile of cash" to the tune of $500 million.

Details on how much will be brought in, they will consider disclosing it when the deal closes.

Alec Gores: Actually, "this transaction wasn't ready 2 years ago"; it wasn't even ready 1 year ago. "Even 6 months ago, this wouldn't have worked." Had to restructure [ed.--ie. do layoffs] . "A fast deal would have been a nightmare for everyone involved."

And that's it.