Nortel Obtains U.S. and Canadian Court Approvals for Sale Agreements with Avaya for Enterprise Solutions Business
September 16, 2009
TORONTO - Nortel* Networks Corporation [OTC: NRTLQ] announced that at a joint hearing today it, its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc., obtained orders from the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice approving the asset and share sale agreement with Avaya Inc. ("Avaya") for the sale of Nortel's North American, Caribbean and Latin American and Asian Enterprise Solutions business. Certain other Nortel subsidiaries, including Nortel Networks U.K. Limited, have entered into a separate asset sale agreement with Avaya for the Europe, Middle East and Africa (EMEA) portion of Nortel's Enterprise Solutions business. Under the agreements, Avaya will pay an aggregate purchase price of US$900 million in cash and fund an additional pool of US$15 million for an employee retention program
As announced on July 20, 2009, 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 Incorporated (NGS) and DiamondWare, Ltd. The sale is subject to additional court approvals in France and Israel as well as regulatory approvals, other customary closing conditions and certain post-closing purchase price adjustments. In some EMEA jurisdictions this transaction is subject to information and consultation with employee representatives. Nortel will work diligently with Avaya to close the sale later this year, subject to the timing of regulatory approvals. The sale close is expected late in the fourth quarter 2009.
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