Britain's Rolls-Royce Plc said it would sell its energy gas turbine and compressor business to German conglomerate Siemens AG for 785 million pounds($1.33 billion).
Rolls, whose energy gas turbine and compressor business has around 2,400 employees, said Siemens would pay a further 200 million pounds for a 25 year licensing agreement granting access to relevant Rolls-Royce aero-derivative technology.
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The energy gas turbine and compressor business supplies aero-derivative gas turbines, compressor systems and related services to customers in the oil and gas, and power generation sectors
"This agreement will give the Energy business greater opportunities as part of a much larger energy company and allows Rolls-Royce to concentrate on the areas of business where we can add most value," Rolls-Royce Chief Executive, John Rishton said in a statement.
The London-based company said the transaction, would transfer Rolls-Royce's shareholding in the Rolls Wood Group (RWG) joint venture, that provides maintenance, repair and overhaul services to Siemens.
(Reporting by Tasim Zahid in Bangalore; Editing by David Gregorio and Andre Grenon)