Nortel Networks has agreed to sell its Carrier VoIP and Application Solutions Business (CVAS) to Genband, for a purchase price of $282m, in a stalking horse asset sale agreement.
The agreement includes the planned sale of substantially all assets of the CVAS business globally including softswitching, gateways and SIP applications. It also includes all patents and intellectual property that are predominantly used in the CVAS business.
Charles Vogt, chief executive officer of Genband, said: “This transaction, although potentially subject to a competitive bidding process, represents an opportunity to fuel affordable network migration to cutting-edge VoIP technology. As a leader in next generation VoIP solutions today, our aim will be to empower service providers and their partners to access a range of leading VoIP solutions to interoperate with Nortel’s installed base, without having to replace existing infrastructure and investment.
Genband has teamed with one of its existing shareholders, One Equity Partners (OEP), to assist in financing the proposed purchase of Nortel’s CVAS assets. Genband will continue its commitment to OEM partnering activity and anticipates that it will expand product, service and support relationships following the proposed Nortel CVAS transaction.
The proposed transaction combines Genband’s trunking, session and security gateway technology and Nortel’s softswitch and application technology, offering service providers a VoIP portfolio.
Genband said that its vision behind the acquisition will be to institute open standards, open interfaces, promote interoperability and continue to build on its global OEM business partner relationships.
Mr Vogt, added: “In addition to our complementary product portfolios and customer bases, we enjoy common locations such as Texas, India and China; and, should we succeed in the auction process, we will expand our operational footprint in Canada and North Carolina. We expect to make employment offers to a significant majority of Nortel CVAS employees.”
