TORONTO – Nortel Networks has been given the green light by courts in the U.S. and Canada to proceed with the sale of its carrier VoIP and application solutions (CVAS) business to Genband Inc.
Certain other Nortel subsidiaries, including Nortel Networks U.K. (in administration), have entered into a separate asset sale agreement with Genband for the Europe, Middle East and Africa portion of Nortel’s CVAS business.
Under the agreements, Genband will pay an aggregate purchase price of US$282 million, subject to balance sheet and other adjustments currently estimated at approximately US$100 million for a net purchase price of approximately US$182 million.
As announced last month, the purchase will include substantially all product platforms, patents, and other IP exclusively used in Nortel’s CVAS business, including softswitching, gateways, SIP applications, and TDM products and services. It will also include a “significant majority” of Nortel’s CVAS employees, and its CVAS customer contracts.
Nortel said it hopes to close the sale in the second quarter of 2010, subject to the timing of regulatory approvals. The sale is subject to court approval in Israel and other regulatory approvals.
