Ericsson To Buy Nortel GSM Unit For $70 Million - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile

Ericsson To Buy Nortel GSM Unit For $70 Million

Nortel's European and Taiwanese GSM and GSM-R operations will go to Kapsch CarrierCom.

Ericsson moved to acquire Nortel Networks' North America GSM operation for about $70 million as Nortel's dismemberment nears completion. Previously, Ericsson entered into an agreement to acquire Nortel's prized CDMA/LTE unit for $1.3 billion.

In the most recent auction, Nortel also sold GSM operations in Europe and Taiwan to Kapsch CarrierCom AG, which also acquired GSM-R (GSM for railways) from Nortel. Kapsch paid about $33 million for the Nortel operations.

While the breakup of Nortel, which has been in bankruptcy proceedings since January, has been a painful experience for Nortel's employees, the acquiring firms have retained the great majority of Nortel employees. According to media reports from Nortel's Canadian headquarters, Ericsson plans to offer employment to 350 Nortel GSM employees while Kapsch expects to hire 330 Nortel employees.

Graham Richardson, general manager of Nortel's GSM/GSM-R business, said the transaction is "a turning point for our employees, the majority of whom will take their considerable expertise on to Ericsson and Kapsch."

Ericsson previously said it would offer employment to more than 2,500 employees in Nortel's CDMA/LTE operation and Ciena, which has committed to acquire Nortel's optical networking and carrier Ethernet business unit, has said it plans to offer jobs to at least 2,000 Nortel employees.

Ericsson has noted that its North American operations are the Swedish firm's largest global operation.

The GSM/GSM-R acquisitions are subject to approval by regulatory agencies in Canada, the United States, and France later this week. Nortel said it expects the sale to be completed in the first quarter of 2010.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
How COVID is Changing Technology Futures
Jessica Davis, Senior Editor, Enterprise Apps,  7/23/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
White Papers
Register for InformationWeek Newsletters
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
Slideshows
Flash Poll