14 DAY TRIAL // Nortel Networks announced recently that it would sell its Enterprise Solutions unit to Avaya Inc. in a $475 million deal. The announcement is yet another step that the Canadian networking firm is taking in the process of selling big parts of its business to different enterprises. According to the company, the new agreement is a “stalking horse” deal, which means that others can also place bids for the Nortel unit. However, the new selling deal comes after last month's agreement between Nortel and Nokia Siemens Networks for the selling of Nortel's CDMA and LTE access unit.
“Today's agreements underscore the value of Enterprise Solutions and the investments we have made in enterprise telephony, unified communications and data networking core competencies,” Nortel's president and chief executive officer, Mike Zafirovski, commented on the Avaya deal. “If successfully completed, this transaction will provide clarity on the path forward for our Enterprise customers, partners and employees, and enable the industry to continue to benefit from Nortel-created technology, know-how and leading-edge innovation.”
Nortel's Enterprise unit has been a competitor for Avaya for a long period of time and is responsible for delivering communications and telephone equipment to businesses and carriers all around the world. The unit was one of the largest pieces that remained available even after the company filed for bankruptcy protection several months ago. The new deal will also be supported by the International Nortel Networks Users Association, which includes a number of more than 4,000 Nortel customers worldwide.
Kevin Kennedy, president and CEO of Avaya, said in a statement: “The addition of Nortel Enterprise Solutions will increase Avaya's global scale, expand our channel partner network, and strengthen our (portfolio) of products and services. This is a strategic opportunity to acquire talent and complementary assets that position the combined company for growth and success.” The U.S. Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice still has to approve the new deal between Nortel and Avaya.