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Jul - Sep 2009 Nortel Obtains Canadian and U.S. Court Approvals for Sale Agreement with Ericsson for CDMA and LTE Access Assets for Purchase Price of US$1.13 Billion
Jul - Sep 2009 Nortel Obtains Canadian and U.S. Court Approvals for Sale Agreement with Ericsson for CDMA and LTE Access Assets for Purchase Price of US$1.13 Billion | Nortel Obtains Canadian and U.S. Court Approvals for Sale Agreement with Ericsson for CDMA and LTE Access Assets for Purchase Price of US$1.13 Billion |
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www.nortel.com The Ontario Superior Court of Justice and the U.S. Bankruptcy Court for the District of Delaware have given the go-ahead to Ericsson’s US$1.13 billion acquisition of Nortel’s CDMA business and LTE Access assets. The takeover, announced on 25 July, will allow Ericsson to boost its LTE portfolio and strengthen its foothold in North America. With Nortel’s CDMA business – the second largest in the world behind Alcatel-Lucent – Ericsson will be positioned to support its Northern American CDMA customers in migration to LTE. 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 Ontario Superior Court of Justice and the United States Bankruptcy Court for the District of Delaware approving the sale agreement with Telefonaktiebolaget LM Ericsson ("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, 2009, 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 giving it a strong technology position in next generation wireless networks. 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. Nortel will work diligently with Ericsson to close the sale later this year. About Nortel Nortel delivers communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. |
