GENBAND reached an agreement to acquire substantially all of the assets of Nortel’s Carrier VoIP and Application Solutions (CVAS) business for a purchase price of US$282 million, subject to balance sheet and other adjustments currently estimated at approximately US$100 million. The deal is a “stalking horse” arrangement subject to additional bids and requires U.S. and Canadian court approvals for bidding procedures, including a bid deadline and tentative auction date.
These agreements include the planned sale of substantially all assets of the CVAS business globally including softswitching, gateways and SIP applications. These agreements also include all patents and intellectual property that are predominantly used in the CVAS business.
GENBAND has teamed with one of its existing shareholders, One Equity Partners III, L.P. (OEP), to assist in financing the proposed purchase of Nortel’s CVAS assets. OEP manages investments and commitments for JP Morgan Chase & Co. in private equity transactions.
“The proposed transaction represents a clear and positive step forward for Nortel’s CVAS customers, employees, and business. Today’s announcement is a strong endorsement of our continued leadership in the Carrier VoIP market where we have held the #1 position since 2002,” said Samih Elhage, President of Nortel’s CVAS business.
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