Alcatel Lucent is in exclusive negotiations to sell its network security business to French defence manufacturer Thales, another step towards its target of hitting €1 billion in asset sales by end 2015.

However Alcatel Lucent has not revealed the price the unit is likely to fetch but the sale will be accompanied by a broader partnership with Thales in cyber security and communications security services.

Alcatel Lucent’s three-year turnaround strategy called The Shift Plan was unveiled last summer. Two smaller businesses have so far been sold for a total of €350 million, including its Enterprise business to China Huaxin, a transaction due to close in Q3.

On the security side, Thales will continue to provide services to Alcatel-Lucent’s customers. The telecoms vendor argues the deal will strengthen its commercial offering in the security market by adding Thales’ expertise to its own, another goal for last year’s revival plan.

And Alcatel Lucent will continue to develop advanced security features for its own portfolio of IP and broadband access products.

Its cyber-security and communications security activities are concentrated mainly in three sites in France, and three other sites around Europe (Belgium, Germany and the UK). About 70 staff from the French sites will transfer to Thales.

The partnership is still subject to a definitive agreement between the two companies and consultation with representative bodies, as well as the necessary permissions.

“Following the partnerships signed with Qualcomm and Intel, this strategic partnership with Thales illustrates Alcatel Lucent’s strategy to reposition itself as a specialist in IP networks, cloud technologies and secured ultra broadband access,” said CEO Michel Combes (pictured).