Nortel GSM Biz Goes to Ericsson, Kapsch

Ericsson and Kapsch emerge as successful joint bidders for US$103M in cash

November 25, 2009

1 Min Read

TORONTO -- Nortel* Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc., Nortel Networks UK Limited (in administration), and Nortel Networks SA (NNSA) have concluded a successful auction of substantially all of the global assets of Nortel's GSM/GSM-R business. Telefonaktiebolaget LM Ericsson ("Ericsson") and Kapsch CarrierCom AG ("Kapsch") are the winning joint bidders with a purchase price of US$103 million in cash.

The sale is subject to court approvals in the U.S. and Canada, which Nortel will seek at a joint hearing on December 2, 2009, and in France. The sale is also subject to certain regulatory approvals, information and consultation with employee representatives and/or employees in certain EMEA jurisdictions, other customary closing conditions and certain post-closing purchase price adjustments. Nortel will work diligently with Ericsson and Kapsch towards an expected sale close in the first quarter of 2010, subject to the timing of obtaining regulatory approvals.

Nortel Networks Ltd.

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