Ericsson has won the bid for Nortel’s CDMA Business and LTE Access assets with an offer of $1.13 billion (£685 million).
Ericsson will purchase Nortel’s CDMA business and all of Nortel’s LTE Access assets. Around 2,500 Nortel employees supporting the CDMA and LTE business will also be offered employment at Ericsson.
Rival bidders, including BlackBerry-maker Research in Motion (RIM), could still disrupt the deal by raising their existing offers. However a hearing is set for tomorrow to decide the destination of Nortel when US and Canadian court and regulatory approvals will be sought.
Nortel president and chief executive Mike Zafirovski said: “The anticipated sale of our CDMA business and LTE Access assets to Ericsson for $1.13 billion represents a very positive prospect for our customers who will be able to continue their relationships with a long term partner; for employees who will have new opportunities at Ericsson and for many of our other stakeholders. I want to especially thank our customers for their tremendous support during the process, which contributed to such a positive outcome.”
“Nortel remains focused on finding the right buyers for our other businesses while continuing to maintain excellent customer service levels. We are determined to maximize value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. With today’s agreement and through the anticipated sales of the Company’s other businesses, Nortel will leave its mark on the industry for decades to come.”
Ericsson president and chief executive Carl-Henric Svanberg said: “The agreement between Nortel and Ericsson brings together leading-edge wireless innovation from two of the world’s top telecommunications suppliers.”