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Avaya-Nortel $900m deal gets Canada nod
07 December 2009
Canada’s industry minister Tony Clement has approved Avaya’s takeover of Nortel’s voice, data and government systems businesses for $900 million
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[Nortel]
[Avaya]
[Canada]
[minister of industry]
Comment: What else could he do? By the end of 2009 Nortel will be little more than a collection of, no doubt valuable, patents, while most of its businesses have been sold off to competitors. It is a sad story of the decline of a great name in the industry.
Avaya has received the approval of Canada’s minister of industry, Tony Clement, to purchase a unit of Nortel Networks for $900 million. The acquisition includes Nortel Enterprise Solutions’ voice, data and government systems businesses.
Avaya will continue to operate Nortel’s Belleville, Ontario, and Ottawa research and development facilities under the deal. Belleville will also be a centre for worldwide hardware development and support.
Avaya, which is owned by private equity firms Silver Lake Partners and TPG Partners, is expecting to close the transaction by the end of 2009. Avaya has also passed regulatory reviews of the proposed acquisition in the US and the European Union.
Avaya will also continue investing in the development of R&D in Canada and employing a large proportion of Nortel’s Enterprise Solutions’ current Canadian employees. GTB
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