Ericsson To Buy Nortel GSM Unit For $70 Million - InformationWeek
IoT
IoT
Mobile
News
11/30/2009
11:19 AM
50%
50%
RELATED EVENTS
Managing Multiple Clouds: Best Practices
Jul 26, 2017
Putting all your eggs in one cloud basket is risky, because clouds are not immune to denials of se ...Read More>>

Ericsson To Buy Nortel GSM Unit For $70 Million

Nortel's European and Taiwanese GSM and GSM-R operations will go to Kapsch CarrierCom.

Ericsson moved to acquire Nortel Networks' North America GSM operation for about $70 million as Nortel's dismemberment nears completion. Previously, Ericsson entered into an agreement to acquire Nortel's prized CDMA/LTE unit for $1.3 billion.

In the most recent auction, Nortel also sold GSM operations in Europe and Taiwan to Kapsch CarrierCom AG, which also acquired GSM-R (GSM for railways) from Nortel. Kapsch paid about $33 million for the Nortel operations.

While the breakup of Nortel, which has been in bankruptcy proceedings since January, has been a painful experience for Nortel's employees, the acquiring firms have retained the great majority of Nortel employees. According to media reports from Nortel's Canadian headquarters, Ericsson plans to offer employment to 350 Nortel GSM employees while Kapsch expects to hire 330 Nortel employees.

Graham Richardson, general manager of Nortel's GSM/GSM-R business, said the transaction is "a turning point for our employees, the majority of whom will take their considerable expertise on to Ericsson and Kapsch."

Ericsson previously said it would offer employment to more than 2,500 employees in Nortel's CDMA/LTE operation and Ciena, which has committed to acquire Nortel's optical networking and carrier Ethernet business unit, has said it plans to offer jobs to at least 2,000 Nortel employees.

Ericsson has noted that its North American operations are the Swedish firm's largest global operation.

The GSM/GSM-R acquisitions are subject to approval by regulatory agencies in Canada, the United States, and France later this week. Nortel said it expects the sale to be completed in the first quarter of 2010.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll