|Nortel Completes Sale of CDMA Business and LTE Access Assets to Ericsson|
Posted: 15-Nov-2009 [Source: Nortel]
[Nortel completes sale of CDMA Business and LTE Access assets to Ericsson for a purchase price of US $1.13 billion.]
Toronto -- Nortel Networks Corporation announced that its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc., have completed the sale of substantially all of Nortel's CDMA Business and LTE Access assets to Telefonaktiebolaget LM Ericsson (Ericsson) for a purchase price of US$1.13 billion. The sale was subject to court approvals in the U.S. and Canada as well as regulatory and other customary closing conditions. These conditions have now been satisfied and the sale was concluded effective today.
"Completion of this first large-scale divestiture is a major milestone in Nortel's plan to preserve the value of its innovation and know-how while maximizing value through the sale of its businesses," said Pavi Binning, Chief Restructuring Officer, Nortel. "As we stated following July's auction, the sale of our CDMA business and LTE Access assets to Ericsson represents a very positive prospect for our customers, our employees and for many of our other stakeholders. Our customers will benefit from having an experienced and financially strong partner supporting their CDMA and future LTE networks, while more than 2,500 skilled employees will now have new opportunities with a world-class technology company."
Under the terms of the sale, Nortel will provide transitional services to Ericsson, and Ericsson will provide products and services to Nortel in support of those CDMA customers remaining with Nortel.
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