diff --git a/vpn-daemons/vpnc/Makefile.am b/vpn-daemons/vpnc/Makefile.am
index 021214e03d..6f00f98eaf 100644
--- a/vpn-daemons/vpnc/Makefile.am
+++ b/vpn-daemons/vpnc/Makefile.am
@@ -25,7 +25,7 @@ endif
 nm-vpnc-service.name: $(srcdir)/nm-vpnc-service.name.in Makefile
 	sed	-e 's|[@]BINDIR[@]|$(bindir)|g' \
 		-e 's|[@]LIBEXECDIR[@]|$(libexecdir)|g' \
-		-e 's|[@]LIBDIR[@]|$(libdir)|g' \
+		-e 's|[@]PREFIX[@]|$(prefix)|g' \
 		< $(srcdir)/nm-vpnc-service.name.in \
 		> nm-vpnc-service.name