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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
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.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
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.