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Nortel sells Enterprise Solutions Business to Avaya for $475 Million
By siliconindia   |   Wednesday, 22 July 2009, 18:10 IST
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Nortel sells Enterprise Solutions Business to Avaya for $475 Million
Bangalore: Nortel Networks is selling its enterprise solutions business to Avaya for $475 million, which is a part of the Canadian network-equipment maker's plan to dispose of assets amid bankruptcy protection. Nortel Networks entered into a share sale agreement with Avaya for its North American, Caribbean and Latin America (CALA) and Asia Enterprise Solutions business; and an asset sale agreement with Avaya for the Europe, Middle East and Africa (EMEA) portion of its enterprise solutions business. The proposed acquisition includes the Nortel Enterprise Solutions voice, data and government systems businesses. "We continue to be fully focused on running our operations and continuing to serve our customers while actively engaged in the sale of our businesses. We have determined that the sale of our businesses maximizes value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. This represents the best path forward, and we are advancing in our discussions with interested parties for our other businesses," said Mike Zafirovski, President and Chief Executive, Nortel. "The addition of Nortel Enterprise Solutions will increase Avaya's global scale, expand our channel partner network, and strengthen our world-class portfolio of products and services," said Kevin Kennedy, President and Chief Executive Officer, Avaya. The transaction is subjected to a competitive bidding process and requires the approval of the United States Bankruptcy Court for the district of Delaware and the Ontario Superior Court of Justice. Joel Hackney, President, Enterprise Solutions added, "The successful buyer will gain access to an industry-leading portfolio that is optimized for real-time communications, bringing speed and simplicity to customers' network environments and allowing them to enhance collaboration, streamline business processes and improve productivity."

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