Nortel Networks has concluded a successful auction of substantially all of its CDMA Business and LTE Access assets. Telefonaktiebolaget LM Ericsson emerged as the winning bidder with a purchase price of U.S. $1.13 billion. The sale was approved July 28 by the Ontario Superior Court of Justice and the United States Bankruptcy Court for the District of Delaware.
Previously, Nokia Siemens had announced it was purchasing Nortel’s CDMA and LTE assets for $650 million. (For more, click here). But Ericsson outbid its rival.
As part of the Nortel Ericsson agreement, a minimum of 2,500 Nortel employees supporting the CDMA and LTE Access business will receive offers of employment from Ericsson. Completion of the sale is subject to regulatory and other customary closing conditions.