Nortel selects Ericsson for CDMA business and LTE Access
By Anthony Capkun
August 5, 2009
Nortel Networks Corp. announced its principal operating subsidiary, Nortel Networks Ltd.—and certain other subsidiaries, including Nortel Networks Inc.—have concluded a successful auction of substantially all of Nortel’s CDMA business and LTE (Long-Term Evolution) Access assets. Telefonaktiebolaget LM Ericsson has emerged the winning bidder with a purchase price of $1.13 billion US. The bid is subject to court approvals in Canada and the U.S., as well as regulatory and other customary closing conditions and certain post-closing purchase price adjustments.
If approved by the courts, Ericsson will purchase Nortel’s CDMA
business—the second-largest supplier of CDMA infrastructure in the
world, says Nortel, and substantially all of Nortel’s LTE Access
assets. Also as part of this agreement, a minimum of 2500 Nortel
employees supporting the CDMA and LTE Access business will receive
offers of employment from Ericsson.
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