Avaya acquires enterprise solutions business of Nortel Networks

Dec 21, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- Avaya, Inc., a US-based provider of communication systems, applications and services, has completed the acquisition of global enterprise solutions business of Nortel Networks Corporation.

Under the terms of the sale, Nortel will provide certain transitional services to Avaya. The sale of certain enterprise solutions assets held by Israeli subsidiaries remains subject to court approval in Israel. Nortel is a Canada-based provider of networking products and solutions.

Update on December 4, 2009: Canadian Minister of Industry has approved the proposed acquisition of Nortel Networks Corporation's global enterprise solutions business by Avaya, Inc.

Update on November 19, 2009: European Commission has approved the proposed acquisition of Nortel's global enterprise solutions business by Avaya.

Update on November 11, 2009: Avaya has granted early termination of the antitrust waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for the proposed acquisition of Nortel's global enterprise solutions business.

Update on September 16, 2009: Avaya has received an approval from the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice to acquire substantially all the assets of Nortel's global enterprise solutions business.

Update on September 14, 2009: Avaya has won the bid to acquire substantially all the assets of Nortel's global enterprise solutions business as well as the shares of Nortel Government Solutions Incorporated and DiamondWare, Ltd. for $900 million in cash, with an additional pool of $15 million reserved for an employee retention program.

Announcement (July 20, 2009): Avaya has signed an agreement to acquire Nortel's enterprise solutions business for $475 million.

The proposed acquisition includes the Nortel's enterprise solutions voice, data, and government systems businesses.

Rumor (March 12, 2009): According to Bloomberg, The Wall Street Journal reported that Avaya along with a private equity consortium is planning to acquire the enterprise unit of Nortel.

Reportedly, Siemens Enterprise Communications and Gores Group LLC, a private-equity firm, are also interested in acquiring the enterprise unit of Nortel.

Nortel had filed for bankruptcy protection in January 2009. The company is planning to sell its core wireless-equipment business and its enterprise unit.

Citigroup and Duff & Phelps, LLC are acting as financial advisors, while Weil, Gotshal & Manges LLP and Ropes & Gray LLP are acting as legal advisors to Avaya.

Deal Value (US$ Million) 475 Deal Type Acquisition Sub-Category Asset Purchase Deal Status Completed: 2009-12-18 Deal Participants Target (Company) Nortel Networks Corporation - Enterprise Solutions Business Acquirer (Company) Avaya, Inc.

Vendor (Company) Nortel Networks Corporation Deal Rationale Avaya believes the agreement is a significant step in strengthening its business communications and positioning the company to effectively deliver its enterprise communications solutions to customers around the globe. The addition of Nortel's enterprise solutions will increase Avaya's global scale, expand its channel partner network and strengthen its portfolio of products and services.

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Avaya acquires enterprise solutions business of Nortel Networks

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