Nortel Networks Corp., the once-powerful Canadian telecom giant that is now struggling through insolvency, announced Monday it has sold off a major portion of the business.
BNN's Michael Kane said Nortel has gotten rid of its enterprise division.
"Nortel Networks says it has chosen Avaya Inc. as the successfully bidder for its enterprise solutions business," Kane told CTV's Canada AM.
"Avaya will pay US$900 million for the assets which include several lucrative government contracts."
Nortel said it will seek government approval for the deal, in both Canada and the U.S., tomorrow.
Courts in France and Israel will also have to sign off on the sale, Nortel said in a news release on Monday.
The deal is expected to close at the end of 2009.
In the news release issued Monday, Nortel repeated its earlier belief that the ongoing creditor protection proceedings will result in any value for Nortel's shareholders.
Nortel says the sale will allow the enterprise division to focus on its priorities.
"As we work through integration planning, it is business as usual, and we will continue to focus on supporting our installed base," said Nortel Enterprise Solutions President Joel Hackney.
"Through deal close and beyond, we will deliver on our stated customer commitments and maintain high levels of service and support. We will ensure our customers can fully leverage their existing Nortel investment as they benefit from the complementary capabilities of the Nortel and the Avaya portfolio of products and services."
