Nortel closing deal with GENBAND for CVAS

Well, it looks like GENBAND will be officially acquiring Nortel Carrier VoIP and Application Solutions (CVAS). Yesterday, Nortel announced that it would not be proceeding to auction, and instead would be working towards closing the sales agreement with GENBAND for the CVAS unit.

The Nortel/GENBAND deal is for all the global assets of Nortel's CVAS business for a purchase price of $282 million. This number is subject to balance sheet and other adjustments that are approximately $100 million which would add up to a net purchase price of $182 million. The deal will transfer all of CVAS' patents and products for softswitching, gateways, SIP applications, TDM products and services, as well as any intelectual property and customer agreements to GENBAND.

GENBAND proposed the bid around Christmas last year and got court approval both in the U.S. and Canada in early January. Although the bidding was open to challengers since then, it seems that Nortel CVAS has found its buyer.

For more:
- read this release

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