Nortel to sell CVAS gear to Genband Inc for $282 million
24 Dec 2009
Nortel Networks Corporation, once the largest company in Canada, yesterday agreed to sell its voice-over-internet protocol calling (CVAS) gear to US-based developer of next-generation IP infrastructure solutions Genband Inc for $282 million.
Plano, Texas-based Genband has teamed with one of its existing shareholders, One Equity Partners (OEP), to purchase the Nortel assets in a "stalking horse" asset sale agreement.
Genband will acquire nearly all of the assets of Nortel's North America, Caribbean and Latin America and Asia (CVAS) business, as well as from Europe, Middle East and Africa for $282 million, subject to balance sheet and other adjustments currently estimated at approximately $100 million.
''From a customer and partner standpoint, we believe our vision behind this acquisition is aligned with the industry's desired evolution path to IP,'' said Charles. Vogt, CEO of Genband .
''This transaction, although potentially subject to a competitive bidding process, represents an opportunity to fuel affordable network migration to cutting-edge VoIP technology.''
''In addition to our complementary product portfolios and customer bases, we enjoy common locations such as Texas, India and China; and, should we succeed in the auction process, we will expand our operational footprint in Canada and North Carolina, he added.