Nortel Divesting

To sell Clarify assets to Amdocs Ltd. for $200 million; unloads controlling interest in Matra Nortel Communications Distribution SA

October 2, 2001

2 Min Read

TORONTO -- Nortel Networks (NYSE:NT - news; TSE:NT. - news) today announced an agreement whereby it will sell substantially all of its Clarify assets to Amdocs Limited (NYSE:DOX - news) for approximately US$200 million in cash. As a condition of the sale in Europe, all necessary employee consultation requirements must also be met. The Clarify portfolio of Customer Relationship Management (CRM) solutions are used by businesses globally to enable personalized interactions with customers and build relationships of loyalty with their customers. "We are making excellent progress against the work plan we laid out earlier this year and this sale of non-core assets is further evidence of that," said Frank Plastina, president service provider and corporate networks, Nortel Networks. "We continue to execute with speed and agility the streamlining of our business around our core markets to align our cost structure, and to strengthen our financial position."In a separate release:PARIS -- Matra Nortel Communications, a Nortel Networks (NYSE:NT - news; TSE:NT. - news) subsidiary, has announced that it has entered into an agreement to transfer effective September 30, 2001 a controlling interest in Matra Nortel Communications Distribution S.A. (MNCD), its French distribution and services company, to SPIE. By acquiring 60.2% of MNCD, SPIE (under the brand of Spie Netcom) will enhance its existing network capability as part of its aggressive European strategy to provide telecom services and distribution to enterprises. According to this agreement, Matra Nortel Communications will continue to hold 19.9% of MNCD, with EADS Defence and Security Networks (EDSN) acquiring 19.9%. This agreement is a further demonstration of Nortel Networks progress against its work plan in which the company is aligning its cost structure and focusing investments to deliver the key next generation solutions in its core market areas. Nortel Networks Corp.

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