Business

Nortel sells Clarify for $200 million US to Amdocs

Nortel said Tuesday it will sell the assets of software firm Clarify a company it bought for $2.1 billion US in stock to Amdocs Ltd. for $200 million US in cash.

Nortel acquired Clarify in March 2000, but recently has been selling off non-core holdings.

"We are making excellent progress against the work plan we laid out earlier this year and this sale of non-core assets is further evidence of that,"Frank Plastina, Nortel's president of service provider and corporate networks, said in a release.

The sales includes Clarify's patents, intellectual property and trademarks. Amdocs will also assume Clarify's existing customer contracts.

The deal is expected to close in the fourth quarter of this year.

Battered as the economy slowed, Nortel is cutting 30,000 jobs and posted a $19.4 billion US loss for the second quarter.

Nortel's stock closed Monday at $8.58 on the TSE. The stock's 52-week high is $105.75.

now