Another piece in the sad chapter in Nortel's ongoing liquidation came to a close today when the Canadian company got word from both the bankruptcy courts in the U.S. and Canada that they could proceed with the sale of their Carrier VoIP and Application Solutions (CVAS) assets to GENBAND.
However, the sale is not a done deal yet. The two companies need approval from Israeli courts. When those approvals come through, Nortel and GENBAND plan to work through the second quarter of 2010 to transfer the assets, products and customer accounts over the GENBAND.
Under the terms of the agreement, GENBAND will purchase the CVAS unit for $282 million, subject to balance sheet and other adjustments currently estimated at approximately $100 million for a net purchase price of approximately $182 million. In December, GENBAND launched a stalking horse bid for the unit last December.
Unlike the sale of its wireless (CDMA, LTE and GSM) and Metro Ethernet Networks divisions where fierce bidding wars emerged, GENBAND was the only vendor to move on Nortel's CVAS assets.
- see the release here
Bankruptcy courts approve Nortel CVAS sale to GENBAND
GENBAND makes "stalking horse" bid for Nortel's CVAS division
Rumor mill: Nortel's carrier VoIP auction coming soon
Nortel closing deal with GENBAND for CVAS
Nortel CVAS leads the VoIP pack
Nortel gets court OK on GENBAND CVAS bid