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Courts approve Nortel/Ericsson deal

Nortel Networks Corp. has announced that it obtained orders from the Ontario Superior Court of Justice and the...


July 29, 2009  


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Nortel Networks Corp. has announced that it obtained orders from the Ontario Superior Court of Justice and the United States Bankruptcy Court for the District of Delaware approving the sale agreement with LM Ericsson for substantially all of Nortel’s CDMA business and LTE Access assets for a purchase price of US$1.13 billion.

 

As announced on July 25, under the asset sale agreement, Ericsson will purchase substantially all of Nortel’s CDMA business which is the second largest supplier of CDMA infrastructure in the world, and substantially all of Nortel’s LTE Access assets.

 

Also as part of this agreement, a minimum of 2,500 Nortel employees supporting the CDMA and LTE Access business will receive offers of employment from Ericsson.

 

Completion of the sale is subject to regulatory and other customary closing conditions, and the purchase price is subject to certain post-closing adjustments.