NEW YORK (TheStreet) -- Shares of Alcatel-Lucent (ALU) rose 4% to $3.12 in afternoon trading Monday after the telecommunications equipment company completed the sale of its cybersecurity and security services business to French electrical systems company Thales Group for an undisclosed amount.
The two companies previously announced the deal in May.
Thales will gain 100 new employees based chiefly in France, with a few in three other European countries.
"This agreement comes as part of a strategic partnership...that will allow Alcatel-Lucent and Thales to provide highly advanced solutions to secure communications, drawing on Thales's unique expertise in cyber-security services, and on Alcatel-Lucent's know-how in secure networks and advanced security features in its telecommunications products," the companies said.
Separately, TheStreet Ratings team rates ALCATEL-LUCENT as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCATEL-LUCENT (ALU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."