Nortel flogs switch biz to Ericsson
Swedes stump up $65m
Nortel has sold its multi-service switching business to Ericsson for $65m.
The deal, which will need approval from the bankruptcy courts, gives Ericsson most of the MMS business, along with Data Packet Network and Services Edge Router products and associated intellectual property.
Customer contracts and most staff will also transfer to the new owners.
Nortel said it would work hard to ensure a seamless transition for customers and maintain the high service the company is known for.
Ericsson paid $1.13bn for Nortel's CDMA and LTE Access business in 2009.
The company said shareholders should not expect any benefit from the deal.
Nortel slid into Chapter 11 in January 2009. The Canadian giant, which had been around over 100 years, had never really recovered from the effects of the dot com crash in the early 2000s.
Nortel's full sale statement is here. ®