Feeds

Avaya grabs Nortel's telecoms biz for $900m

Staves off Siemens

Beginner's guide to SSL certificates

Avaya has won an auction for Nortel's enterprise telecoms business, beating out rival bidder, Siemens Enterprise Communications.

The company will pay $900m cash for the unit, nearly double the $475m it initially offered during so-called stalking horse bidding as part of Nortel's bankruptcy-court proceedings. Avaya will also pay an additional $15m for an employee-retention program.

Nortel filed for bankruptcy protection in January after years of losses and an accounting scandal. Nortel sold its wireless business to Ericsson in July for $1.13bn following a similar process.

Avaya was forced to sharply raise its offer after Siemens entered the formal bidding. Also included in the sale are Nortel's shares in Nortel Government Solutions Inc. and DiamondWare Ltd.

"Our successful bid brings us closer to adding Nortel and its complementary channel, portfolio, research and development, and global presence to Avaya," Avaya's chief executive Kevin Kennedy said in a statement.

"It is our intention to announce an integrated product and services roadmap as soon as we have these items identified through a thorough integration process. At this time, we cannot speculate further on details."

Last week, Verizon said it was ready to oppose the sale, citing national security concerns, if Avaya wouldn't agree to take up existing Nortel contracts. Verizon buys and resells Nortel kit to branches of the US government, including Congress, the military, and anti-terrorism agencies. Avaya said it is in talks with Verizon to reach a resolution.

Avaya aims to close the sale within the fourth quarter, subject to approvals from courts in the US, Canada, France and Israel as well as regulatory clearances and other conditions.

Nortel will seek Canadian and US court approvals at a joint hearing on September 15, 2009. In some EMEA jurisdictions, the transaction is subject to consultation with employee representatives. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.