TORONTO – U.S. telco Avaya has been crowned the winner in the auction for Nortel’s global enterprise solutions business, and will also acquire shares of Nortel’s Government Solutions Inc. and DiamondWare.
Nortel said in a statement that Avaya will pay US$900 million for the assets, plus an additional pool of US$15 million earmarked for an employee retention program. The amount is almost double what the company offered in July.
Nortel Enterprise Solutions president Joel Hackney called the deal “fantastic news for our customers”.
"As we work through integration planning, it is business as usual, and we will continue to focus on supporting our installed base," Hackney said in a statement. "Through deal close and beyond, we will deliver on our stated customer commitments and maintain high levels of service and support. We will ensure our customers can fully leverage their existing Nortel investment as they benefit from the complementary capabilities of the Nortel and the Avaya portfolio of products and services."
The sale is subject to court approvals in the U.S., Canada, France and Israel as well as regulatory approvals, other customary closing conditions and certain post-closing purchase price adjustments.
Nortel said that it will seek Canadian and U.S. court approvals of the proposed sale agreement at a joint hearing beginning Tuesday, and the sale is expected to close late in the fourth quarter 2009.
