TORONTO – Nortel Networks has completed the sale of substantially all of its GSM/GSM-R business to Ericsson and Kapsch for US$103 million in cash, subject to working capital adjustments.
As previously announced last November, Ericsson has bought assets relating to the North American GSM business and Kapsch has purchased assets relating to the EMEA and Taiwan GSM businesses. Kapsch has also acquired the global assets of the GSM-R business.
Approximately 680 Nortel employees were to receive employment offers from the joint bidders.
"Today, we’ve reached another successful milestone in the divestiture of our businesses," said Nortel CFO John Doolittle, in a statement. "We wish our transferring employees well, knowing that they are taking their considerable expertise to Ericsson and Kapsch."
