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Genband wins Nortel VoIP unit for $182m
25 February 2010
Genband has won control of Nortel’s carrier VoIP business for $182 million after no other companies bid in an auction
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Genband
Nortel
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One Equity Partners
Genband is buying Nortel Networks’ carrier voice over IP business for nearly $182 million. Genband partnered with One Equity Partners and other existing shareholders to place the bid.
The deal, which is awaiting court approval, is expected to close in the next quarter. Genband previously offered $282 million for the unit, subject to adjustments that would lower the price tag by $100 million.
The bankrupt Canadian telecom equipment maker had planned to sell the unit at an auction but no other qualified bidders emerged.
“We will create the most comprehensive, standards-based switching portfolio in the world,” said Charles Vogt, Genband’s CEO.
The Nortel unit, which has over 2,000 employees, focuses on supplying advanced technology for telecom carriers including soft switches and media gateways used to build next generation networks.
“No other supplier will be better positioned to enable service providers a more cost effective means to optimise their existing fixed TDM networks, and transition from fixed TDM to IP and from fixed to mobile convergence,” Vogt added.
Nortel is also selling its wireless, optical and enterprise network-equipment businesses and still mulling options for the sale of its intellectual-property portfolio, including its next-generation wireless network patents. GTB