Nortel Networks won court approval to sell its Enterprise Solutions Business to Avaya in a deal worth $915m.

In a joint hearing, the judges from the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice have approved the asset and share sale agreement with Avaya for the sale of Nortel’s North American, Caribbean and Latin American and Asian Enterprise Solutions Business.

The US bankruptcy judge has rejected an objection from Verizon Communications, which claimed that the deal may harm the national security.

The hearing followed an auction, where Avaya has agreed to buy Nortel’s Enterprise Solutions Business for $900m in cash, which is almost double compared to its initial $475m ‘stalking horse’ offer. The deal also includes an additional pool of $15m for an employee retention program.

Earlier, Nortel has filed for bankruptcy protection in January and later decided to sell off its businesses than reorganising the company.

In July, Ericsson has won an auction for the wireless assets of Nortel Networks. It has entered into an asset purchase agreement to acquire parts of the Carrier Networks division of Nortel relating to CDMA and LTE technology in North America for $1.13 billion on a cash and debt free basis.

However, the closing of the Avaya-Nortel deal remains subject to additional court approvals in France and Israel, and information and consultation processes with employee representatives in certain EMEA jurisdictions. The transaction is also subject to customary closing conditions, including receipt of necessary regulatory approvals.