Nortel sells business communications unit

Nortel Networks Corp. has reached an agreement to sell off most of its Enterprise Solutions unit, in a deal that will potentially see a key chunk of its remaining business go to Avaya Inc. for US$475 million.

TORONTO — Nortel Networks Corp. has reached an agreement to sell off most of its Enterprise Solutions unit, in a deal that will potentially see a key chunk of its remaining business go to Avaya Inc. for US$475 million.

The Enterprise unit supplies phone systems and other communications equipment to businesses and large organizations around the world, and had remained one of the biggest parts of the business that hadn’t found a buyer.

Nortel president and CEO Mike Zafirovski said it was an orderly sale of a well-performing businesses.

“We’re very confident that this is a great thing for employees and for customers,” Zafirovski said.

New Jersey-based Avaya — spun off from Lucent several years ago — has been a rival of Nortel and has long been considered a leading contender to buy the Toronto-based company’s Enterprise unit, which sells critical communication systems to the IT departments of companies and public-sector organizations.

Zafirovski noted Avaya would assume a $28 million loan as part of the agreement. However, they would not obtain receivables or cash and would only get the rights to Nortel patents used exclusively in that division of the technology firm.

Meanwhile, Research In Motion Ltd. (TSX:RIM) said Monday that it has effectively been prevented from submitting an offer for the Nortel wireless business because its desire to buy other Nortel assets as well.

“RIM sought to be qualified as a qualified bidder in Nortel’s auction bidding process for the Wireless Business, but RIM was told it could be qualified only if it promised not to submit offers for other Nortel assets for a period of one year,” the company said.

Just Posted

Sasktachewan pup, who has extensive burns, makes her way to Red Deer

Donations accepted for Phoenix who has third degree burns on her body

Man dead in ATV collision in central Alberta

The Rocky Mountain House RCMP are investigating a quad rollover collision that… Continue reading

One airlifted to hospital after avalanche on glacier in Yoho National Park

LAKE LOUISE, Alta. — Parks Canada says it has responded to an… Continue reading

Hundreds of Canadian troops deployed to flood zones in Quebec and N.B.

MONTREAL — Quebec Premier Francois Legault will visit flood-damaged regions north of… Continue reading

WATCH: An ‘Eggstemely Fun Easter’ at Bower Place in Red Deer

Bower Place mall made sure Red Deer families were able to have… Continue reading

‘The Curse of La Llorona’ reigns over weekend box office

LOS ANGELES — “The Curse of La Llorona” (yuh-ROH’-nuh) had only good… Continue reading

New Brunswick premier urges caution as floodwaters continue to rise

FREDERICTON — Rising floodwaters have forced the closure of at least 25… Continue reading

Witnesses still struggling one year after deadly Yonge Street van attack

TORONTO — The survivor guilt settled in moments after he saw all… Continue reading

‘Shocking violation’: Parish prepares to re-bury remains after grave plundered

ST. JOHN’S, N.L. — Largely untended for decades, the toppled and faded… Continue reading

President attends Easter service following slew of tweets

PALM BEACH, Fla. — President Donald Trump is using Easter morning to… Continue reading

Easter Sunday blasts kill at least 207 in Sri Lanka

COLOMBO, Sri Lanka — At least 207 people were killed and hundreds… Continue reading

Soldiers deploying to flood-prone areas as water levels rise in New Brunswick

FREDERICTON — About 120 Canadian soldiers will soon be deployed in western… Continue reading

Soldiers deploy across Quebec after flood-caused sinkhole claims woman’s life

MONTREAL — Canadian Armed Forces are deploying in three regions across Quebec,… Continue reading

Most Read