The History of Nortel and Avaya

November 13, 2009, Nortel Completes Sale of CDMA Business and LTE Access Assets to Ericsson

Nortel announced its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc., have completed the sale of substantially all of Nortel’s CDMA Business and LTE Access assets to Telefonaktiebolaget LM Ericsson (Ericsson) for a purchase price of US$1.13 billion.

November 16, 2009, Ericsson Completes Nortel Acquisition - Canadian vendor's CDMA and LTE business to adopt Ericsson brand immediately.

Swedish network equipment vendor L.M. Ericsson Telephone Co. said they've completed its previously announced acquisition of Nortel Network Corp.'s Code Division Multiple Access, or CDMA, and Long Term Evolution, or LTE, assets in North America. Ericsson said in June it was entering into a $1.13 billion asset purchase agreement for the North American company's LTE and CDMA assets. "This deal, along with our recently announced services and LTE agreements, demonstrates the importance of the North American market to Ericsson," said Chief Executive Hans Vestberg, adding that North America will now be the Stockholm-based company's largest region in terms of sales. The former Nortel staff will be integrated into the Ericsson group  will work under the Ericsson brand (written by Gustav Sandstrom, Dow Jones Newswires).

December 8, 2009, Nortel Completes Sale of Assets of Next Generation Packet Core Network Components to Hitachi

Nortel announced that it has completed the sale of the assets of its Carrier Networks business associated with the development of Next Generation Packet Core network components (Next Generation Packet Core Assets) to Hitachi Ltd. for a purchase price of US$10 million.

December 18, 2009, Nortel Completes Sale of Substantially All of Enterprise Solutions Business to Avaya

Nortel announced it has completed the sale of substantially all of the assets of Nortel's global Enterprise Solutions business as well as the shares of Nortel Government Solutions Incorporated and DiamondWare, Ltd. to Avaya Inc.

February 24, 2010, Nortel Announces GENBAND as Successful Acquirer of its Carrier VoIP and Application Solutions Business

Nortel Networks Corporation announced that its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), will not proceed to auction and will work towards closing the asset sale agreements with GENBAND, Inc. (GENBAND) which were previously announced on December 23, 2009. The agreements provide for the sale of substantially all of the global 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 for a net purchase price of approximately US$182 million.

March 19, 2010, Nortel Completes Sale of Optical Networking and Carrier Ethernet Business to Ciena Announces Management Changes

Nortel announced that it has concluded a successful auction of substantially all of the assets of Nortel's global Optical Networking and Carrier Ethernet businesses. Ciena has emerged as the winning bidder with a purchase price of US$530 million in cash plus US$239 million principal amount of convertible notes due June 2017.

March 31, 2010, Nortel Completes Sale of GSM/GSM-R Business to Ericsson and Kapsch

Nortel announced that it completed the sale of substantially all of the global assets of Nortel's GSM/GSM-R business. Telefonaktiebolaget LM Ericsson ("Ericsson") and Kapsch CarrierCom AG ("Kapsch") have purchased the businesses for US$103 million in cash subject to working capital adjustments.

May 28, 2010, Nortel Completes Sale of Carrier VoIP and Application Solutions Business to GENBAND

Nortel announced that it has completed the sale of all of the global assets of Nortel’s Carrier VoIP and Application Solutions (CVAS) business to GENBAND, Inc. (GENBAND) for a purchase price of US$282 million, less balance sheet and other adjustments of approximately US$100 million for a net purchase price of approximately US$182 million, which is subject to post-close working capital adjustments.

June 30, 2010, Acquisition of Nortel's Stake of LG-Nortel Completed

Ericsson ( completed the acquisition of Nortel's majority shareholding (50%+1 share) in LG-Nortel, the joint venture of LG Electronics and Nortel Networks.

Nortel's Bankruptcy - Overview

Since January 2010, Nortel has sold its CDMA division to Ericsson for $US1.13 billion; sold its enterprise division to Avaya for $915 million; sold its core packet network business to Hitachi for $10 million; and is in the process of auctioning off its carrier VoIP gear with an initial bid of $282 million. (GO BACK TO AVAYA NORTEL)

About AVAYA

Avaya is a global leader in business communications systems. The company provides unified communications, contact centers, and related services directly and through its channel partners to leading businesses and organizations around the world. Enterprises of all sizes depend on Avaya for state-of-the-art communications that improve efficiency, collaboration, customer service and competitiveness.

Avaya’s unique combination of communications applications, software and services helps companies simplify complex communications and integrate with technologies from other vendors, enabling customers to unlock value and potential from their network. By embedding communications into the operations of an enterprise, Avaya helps improve the way organizations work − making people more productive, processes more flexible and customers more satisfied.