U.S., Canadian Courts Approve Nortel Unit Sale To Genband
March 03 2010 - 2:53PM
Dow Jones News
Genband Inc. won approval from U.S. and Canadian courts to buy
Nortel Networks Corp.'s (NRTLQ) division that makes network
equipment for phone calls over the Internet for about $182
million.
The deal, approved following a joint bankruptcy-court protection
hearing in Toronto and Wilmington, Del., will give Genband, a
closely held vendor of Voice-over-Internet Protocol gear, a large
installed customer base. Nortel is considered a global leader in
VoIP carrier sales measured in terms of revenue and its customers
include France Telecom (FTE), Verizon Communications Inc. (VZ) and
BT Group PLC. (BT).
Nortel aims to close the transaction in the second quarter.
Genband, of Plano, Texas, is acquiring the Nortel division with
support of One Equity Partners, one of its shareholders. One Equity
manages $8 billion of investments on behalf of JP Morgan Chase
& Co.
Nortel selected Genband's bid after failing to attract rival
bidders. Genband's bid was for $282 million, subject to
balance-sheet and other adjustments estimated at about $100
million, for a net price of $182 million.
With the latest agreement, Nortel has raised more than $3
billion. Nortel has also either sold, or agreed to sell, its
wireless, optical, and enterprise network-equipment businesses. The
company is still weighing its options for the sale of its
intellectual-property portfolio, including its coveted
next-generation wireless network patents.
-By Ben Dummett, Dow Jones Newswires; 416-306-2024;
ben.dummett@dowjones.com
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