Nortel gets green light to sell enterprise business

Nortel has received U.S. and Canadian court approval to sell its enterprise business to Avaya or at auction on Sept. 11.

According to a story in Reuters, Nortel received the go ahead Wednesday. Nortel confirmed the report.

Avaya has offered $475 million for the business, setting a floor for auction in five weeks.

Bids from other interested parties are due Sept. 4, according to the report.

Bankrupt Nortel said it would liquidate its assets rather than try to remain intact as it reorganizes under Chapter 11. Ericsson just won the company’s CDMA and LTE wireless business for $1.13 billion.

Nortel filed for bankruptcy in January. The company has since been losing orders and customers due to its precarious financial situation and the overall global economic downturn.

If Avaya’s offer is accepted, the company would gain about 10 percentage points in enterprise telephony revenue market share, further extending its lead on No. 2 vendor Cisco, according to data from Dell’Oro Group. Competition from Cisco was cited by Nortel as a reason for selling the business, according to the Reuters report.

Nortel’s Enterprise Solutions group employs about 7,800 people.

Any buyer of the business would be free to retain or terminate existing customer contracts, according to the Reuters story.

The buyer would obtain Nortel’s routers, switches and enterprise VoIP equipment and applications, as well as integrator Nortel Government Solutions and DiamondWare Ltd., which makes softphones.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Empowering the hybrid workforce: how technology can build a better employee experience

Across the country, employees from organizations of all sizes expect flexibility...

What’s behind the best customer experience: How to make it real for your business

The best customer experience – the kind that builds businesses and...

Overcoming the obstacles to optimized operations

Network-driven optimization is a top priority for many Canadian business leaders...

Thriving amid Canada’s tech talent shortage

With today’s tight labour market, rising customer demands, fast-evolving cyber threats...

Staying protected and compliant in an evolving IT landscape

Canadian businesses have changed remarkably and quickly over the last few...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now