BASKING RIDGE, NJ – Telecom company Avaya has struck a deal to buy Nortel’s enterprise solutions business for US $475 million.
Calling the agreement “a significant step” in its goal to strengthen its position in the global business communications industry, the proposed acquisition includes the Nortel Enterprise Solutions voice, data and government systems businesses.
“The addition of Nortel Enterprise Solutions will increase Avaya’s global scale, expand our channel partner network, and strengthen our world-class portfolio of products and services,” said Avaya president and CEO Kevin Kennedy, in the announcement. “This is a strategic opportunity to acquire talent and complementary assets that position the combined company for growth and success. We are committed to protecting the communications investments of the customers of Avaya and Nortel, and to effectively executing the integration of Nortel Enterprise Solutions and Avaya.”
The transaction is subject to a competitive bidding process and requires the approval of the US bankruptcy court for the District of Delaware and the Ontario Superior Court of Justice.
Avaya said that it expects that hearings before those courts to approve bidding procedures will be held within the next couple of weeks, followed by an auction, with hearings for approval of the ultimate sale to be held thereafter.
