Nortel Networks has entered into a stalking horse share and asset sale agreements with Avaya for its Enterprise Solutions business. The purchase price is set for $475m.
These agreements include the planned sale of substantially all of the assets of the Enterprise Solutions business globally as well as the shares of Nortel Government Solutions (NGS) and DiamondWare.
Mike Zafirovski, president and chief executive officer of Nortel, said: We continue to be fully focused on running our operations and continuing to serve our customers while actively engaged in the sale of our businesses. We have determined that the sale of our businesses maximises value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible.”
Nortel said that it will file the stalking horse asset and share sale agreements with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers.
A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice. Following completion of the bidding process, final approval of the US and the Canadian courts will be required, the company said.
Joel Hackney, president of Enterprise Solutions at Nortel, said: The successful buyer will gain access to an industry-leading portfolio that is optimised for real-time communications, bringing speed and simplicity to customers’ network environments and allowing them to enhance collaboration, streamline business processes and improve productivity.
