Nortel sells GSM business to Ericsson, Kapsch

TORONTO - Ericsson and Kapsch CarrierCom AG have jointly purchased Nortel Network’s GSM wireless technology business for US$103 million in cash.Approximately 680 Nortel employees will receive offers of employment from the joint bidders. If approved by the courts, Ericsson will purchase assets relating to the North American GSM business and Kapsch will purchase assets relating to the EMEA and Taiwan GSM businesses. Kapsch will also purchase the assets of the GSM-R business.Each company will assume the relevant customer contracts in their specified regions as well as the products, specified patents predominantly used in the GSM/GSM-R business, and non-exclusive licenses of...