IP infrastructure equipment manufacturer Genband has agreed to acquire substantially all of the assets of Nortel's Carrier VoIP and Application Solutions Business (CVAS) worldwide, for USD 282 million and a total cost of ownership in excess of USD 400 million. The proposed transaction combines Genband's access, trunking, session and security gateway technology with Nortel's softswitch and application products. Genband's vision behind the acquisition will be to institute open standards, open interfaces, promote interoperability and continue to build on its global OEM business partner relationships. Genband has teamed with one of its existing shareholders, One Equity Partners, to purchase the Nortel assets. This transaction, which encompasses substantially all of the assets of Nortel's North American, Caribbean and Latin American and Asian CVAS business, as well as substantially all of the assets of the European, Middle Eastern and African portion of its CVAS business, is subject to a competitive bidding process and requires the approval of Canadian and US courts, as par of Nortel's bankruptcy proceedings. In addition, consummation of the transaction is subject to regulatory and other conditions. The agreements are also subject to purchase price adjustments under certain circumstances. In early January, Nortel expects to seek US and Canadian court approvals for bidding procedures, including a bid deadline and tentative auction date.
