Regulators OK Avaya’s $900M Nortel enterprise business unit buy
Nortel's breakup continues
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RESEARCH TRIANGLE PARK, N.C. - Avaya has received regulatory approval for its $900 million acquisition of bankrupt Nortel’s Enterprise business unit, the New Jersey-based communications gear maker said Wednesday.
The deal is expected to close in December.
The U.S. and Canadian governments have been reviewing the deal, which was announced in September. It already has been approved by bankruptcy courts in both countries.
Many of Nortel’s remaining 1,800 employees in the triangle work for the enterprise business group. Most of the Enterprise business group operations are based in RTP and Richardson, Texas. The head of the group, Joel Hackney, is based in RTP.
Avaya has said it will retain some 60 percent of the Nortel Enterprise employees.
The Enterprise unit supplies landline phone systems and other communications equipment to businesses and large organizations around the world.
On Friday, Nortel is scheduled to auction off its metro Ethernet and optical networks business unit.
Maryland-based Ciena (Nasdaq: CIEN) is the front-runner with a bid of more than $500 million.
Bloomberg News, citing two unnamed sources, reported Tuesday that Nortel extended a Monday deadline for more offers to be made.
Nokia Siemens is among other potential bidders, Bloomberg reported.
Ciena’s bid, the Washington Business Journal reported Tuesday, has received regulatory approval for its bid that includes some $390 million in cash plus 10 million shares of stock.
Ciena is the “stalking horse” bidder in the process, giving it rights to submit higher bids.
Copyright 2012 WRAL Tech Wire. All rights reserved.
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