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Nortel Obtains Canadian and U.S. Court Approvals for Sale Agreement with Ericsson for CDMA Business and LTE Access Assets for Purchase Price of US$1.13 Billion | |
28 July 2009
TORONTO - Nortel* Networks Corporation [OTC: NRTLQ] announced that at a joint hearing today, it, its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc., obtained orders from the Ontario Superior Court of Justice and the United States Bankruptcy Court for the District of Delaware approving the sale agreement with Telefonaktiebolaget LM Ericsson ("Ericsson") for substantially all of Nortel's CDMA business and LTE Access assets for a purchase price of US$1.13 billion.
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* Nortel Business and Financial Restructuring
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As announced on July 25, 2009, under the asset sale agreement, Ericsson will purchase substantially all of Nortel's CDMA business which is the second largest supplier of CDMA infrastructure in the world, and substantially all of Nortel's LTE Access assets giving it a strong technology position in next generation wireless networks. Also as part of this agreement, a minimum of 2,500 Nortel employees supporting the CDMA and LTE Access business will receive offers of employment from Ericsson. Completion of the sale is subject to regulatory and other customary closing conditions, and the purchase price is subject to certain post-closing adjustments. Nortel will work diligently with Ericsson to close the sale later this year.
Nortel
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