Nortel makes asset sale deal with Genband
Agreement worth $282M US, but higher bidder possible
Nortel Networks Corp. announced agreement on another asset sale Wednesday, this time for all of its carrier voice over internet protocol and application solutions business to Genband Inc.
The deal is worth $282 million US.
But the technology could still go to another bidder if a higher offer comes at an auction supervised by bankruptcy courts.
Nortel said a "significant majority" of the employees who work in its CVAS division would be able to continue working with Genband.
Genband has teamed up with existing shareholder One Equity Partners III to assist in financing the proposed purchase.
Samih Elhage, president of Nortel's CVAS business, said it would remain focused on providing customers with the highest levels of service and support throughout the purchase process.
Court approvals for the terms and timing of the auction are expected in January.
Nortel filed for bankruptcy protection in January and is auctioning off its assets in an attempt to pay back debt holders. Earlier this month, Ciena Corp won an auction to acquire Nortel's optical networking and carrier ethernet business for $769 million.
With files from The Canadian Press