GENBAND To Purchase Nortel's Carrier VoIP, App Solutions Assets

GENBAND, a developer of next-generation IP infrastructure solutions, has entered into an agreement with Nortel to acquire substantially all of the assets of its Carrier VoIP and Application Solutions Business (CVAS) globally, for a purchase price of $282 million and a total cost of ownership in excess of $400 million.

The proposed transaction combines GENBAND’s next-generation access, trunking, session and security gateway technology and Nortel’s softswitch and application technology, offering global service providers a comprehensive VoIP portfolio. GENBAND’s vision behind the acquisition will be to institute open standards, open interfaces, promote interoperability and continue to build on its global OEM business partner relationships.

“From a customer and partner standpoint, we believe our vision behind this acquisition is aligned with the industry’s desired evolution path to IP,” said Charles D Vogt, Chief Executive Officer of GENBAND.

“This transaction, although potentially subject to a competitive bidding process, represents an opportunity to fuel affordable network migration to cutting-edge VoIP technology. As a provider of next-generation VoIP solutions today, our aim will be to empower service providers and their partners to access a range of leading VoIP solutions to interoperate with Nortel’s installed base, without having to replace existing infrastructure and investment.”

“In addition to our complementary product portfolios and customer bases, we enjoy common locations such as Texas, India and China; and, should we succeed in the auction process, we will expand our operational footprint in Canada and North Carolina. We expect to make employment offers to a significant majority of Nortel CVAS employees.”

This transaction is subject to a competitive bidding process and requires the approval of Canadian and US Courts.