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Avaya to acquire Nortel’s enterprise business

US network company confirms deal to acquire Nortel’s enterprise assets

Avaya to acquire Nortel’s enterprise business
Avaya originally agreed to acquire Nortel’s enterprise business in July.

US network communications company Avaya is set to acquire the enterprise division of beleaguered Canadian vendor Nortel for $915 million.

Avaya said in a statement that it had agreed to acquire Nortel Enterprise Solutions for $900 million in proceeds to Nortel with an additional pool of $15 million reserved for an employee retention program.

The announcement follows the completion of an auction, although the final transaction is subject to court and customary regulatory approvals in Canada and the United States.

Avaya originally signed an agreement in July to acquire most of Nortel's enterprise solutions business for US$475 million, in a “stalking horse” agreement which allowed other interested parties to make bigger bids for the business until the sale was finalised.

“Our successful bid brings us closer to adding Nortel and its complementary channel, portfolio, research and development, and global presence to Avaya,” said Kevin Kennedy, president and CEO, Avaya.  “We believe the acquisition brings inherent value to both organisations’ customers, employees and partners, and we look forward to its successful conclusion."  

While Avaya failed to confirm which parts of Nortel’s enterprise business it will acquire, it earlier stated that the deal would include Nortel’s enterprise solutions divisions in North America, Caribbean and Latin America and Asia.

It also previously said that the deal would include the Europe, Middle East and Africa (EMEA) portion of Nortel’s enterprise solutions business, dependent on an asset sale agreement between the two companies.

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