Ericsson was today selected as successful bidder to acquire certain assets of the Carrier Networks division of...
November 25, 2009
Ericsson was today selected as successful bidder to acquire certain assets of the Carrier Networks division of Nortel relating to Nortel’s GSM business in Canada and the U.S..
The purchase is structured as an asset sale at a cash purchase price of US$70 million on a cash and debt free basis, subject to adjustments.
The announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to approval by courts in Canada and the U.S and customary regulatory approvals and other conditions.
Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the agreements, Ericsson is acquiring certain assets of Nortel’s GSM business in North America, while Kapsch is paying US$33 million to acquire most of the remaining assets outside North America.
“Along with our recent acquisition of Nortel’s CDMA and LTE assets, the transaction emphasizes Ericsson’s commitment to the North American market,” said Hans Vestberg, incoming president and CEO of Ericsson.
The agreement includes the transfer of important GSM business with North American operators such as AT&T and T-Mobile. Under the agreement, Ericsson will offer employment to approximately 350 employees from Nortel. Nortel’s North American GSM operations generated approximately US$400 million in 2008.