|
Avaya Buys Nortel
Originally posted on VoIP & Gadgets Blog, here: http://blog.tmcnet.com/blog/tom-keating/nortel/avaya-buys-nortel.asp.
  Avaya (News - Alert) has agreed to purchase Nortel's enterprise business for $900 million, which is much larger than the $475 million 'stalk horse' bid put out last month by Avaya. As part of the deal, Nortel will sell the assets of the Enterprise Solutions Business, and shares of Nortel (News - Alert) Government Solutions and DiamondWare to Avaya. Avaya will pay out US$900 Million in cash to Nortel, with an additional pool of US$15 Million Reserved for an Employee Retention Program.
But the bid is subject to approval. Both Canadian and U.S. Court Approvals of Sale will be sought at a joint hearing on September 15. Expect fireworks to fly in the Canadian government over this deal. Nortel is a huge source of national pride for Canadians, so to lose Nortel to an American company is something that the Canadian government may not be happy with. Though I just don't see the Canadian governement shelling out $900 million in a counter-bid offer to acquire and nationalize them.
Commenting on the announcement, Nortel Enterprise Solutions President Joel Hackney (News - Alert) said:
"This is fantastic news for our customers, as this will empower us to continue to deliver industry-leading solutions and services focused on unlocking the enterprise business potential enabled by unified communications. It provides the capability to chart our future with laser-focus, enabling customers to compete in new ways with greater scale and resources. We look forward to working closely with our customers, partners and stakeholders during this pre-close phase to ensure that we continue to innovate to meet customers' needs with high-performance, efficient and secure communications solutions.
"As we work through integration planning, it is business as usual, and we will continue to focus on supporting our installed base," Hackney said. "Through deal close and beyond, we will deliver on our stated customer commitments and maintain high levels of service and support. We will ensure our customers can ully leverage their existing Nortel investment as they benefit from the complementary capabilities of the Nortel and the Avaya portfolio of products and services."
Tags: avaya, enterprise, nortel, voip
Related tags: enterprise business, enterprise solutions, canadian government, nortel, avaya, million
Related Entries
ShoreTel Lands 1st 'Skype for SIP' interoperability - Sep 09, 2009
Fonality's trixbox Pro Unified Agent Edition integrates with Salesforce.com - Sep 05, 2008
The IP-PBX Energy Wars... - Aug 04, 2008
Avaya #1 VoIP PBX Vendor? - Aug 21, 2007
Microsoft Public Beta of Office Communications Server 2007 - Mar 07, 2007
SIP Print SME VoIP Recording Appliance Launches - Sep 01, 2009
Microsoft OCS 2010 Will Finally Eliminate the PBX - Mar 16, 2009
U.S. Social Security Blows $300 Million on Nortel VoIP system - Feb 02, 2009
Avaya acquires Nortel rumors - Jan 14, 2009
Toktumi Now Offered on Dell VoIP Website - Nov 24, 2008
TrackBacks
| Comments | Tag with del.icio.us | VoIP & Gadgets Blog Home | Permalink: Avaya Buys Nortel
[ Back To TMCnet.com's Homepage ]
|
TMCnet LOGIN
Webinars
