TORONTO – Nortel Networks has agreed to sell off its remaining patents and patent applications to Google Inc. for a cash purchase price of US$900 million.
The ‘stalking horse’ agreement includes the planned sale of approximately 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, Internet, service provider, semiconductors and other patent portfolios including Internet search and social networking.
Nortel said Monday that the agreement follows a confidential, multi-round bidding process involving several interested companies and consortia from around the world.
"This is an unprecedented opportunity to acquire one of the most extensive and compelling patent portfolios to ever come on the market", said George Riedel, chief strategy officer and president of Nortel’s business units, in a statement. “We look forward to what we hope will be a robust auction, following the requisite court approvals, currently expected to be held in June 2011".
The insolvent company will file the stalking horse bid with the U.S. bankruptcy court in Delaware and Ontario, and will seek final approval after the bidding process has been completed. The transaction is subject to the satisfaction of regulatory and other customary conditions.
