Applications delivery solution company Radware has agreed to purchase some of Nortel's assets around its Layer 4-7 Applications Delivery Business. Nortel originally got into the application switch product business in 2000 when it bought Alteon WebSystems.
Under the agreement worked out between the companies, which is pending approval through the bankruptcy courts of the U.S. and Canada, Radware will pickup up ownership, product development and outstanding warranties to the Applications Delivery Business, merging the assets under the Radware Alteon brand - unless someone outbids Radware in the bankruptcy auction process.
Because the offer is being tended under auction proceedings, nobody is saying how much Radware is offering for the assets. Other bidders may choose to make their own offers for the assets and the highest bid wins. Speculation in January had the Alteon assets priced out at $50 million - a far cry from the "insane" $7 billion in stock Nortel paid for Alteon Websystems back in the dot.com era.
Radware is making a strong case in public for the acquisition. The company plans to pick up a number of Nortel employees supporting the Alteon product family, "significantly invest" in service and support for the existing Alteon customer base, and offer a five-year support plan, including continuing to sell the products and invest in their development.
However much Nortel gets from the sale will be a drop in the bucket compared to the billions of dollars owed to all of its debtors.
Nortel pledges to offer more re-org details
Nortel filed for bankruptcy protection last month