“GENBAND Completes Takeover of Nortel VoIP Business, Most Employees on Board”

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GENBAND Completes Takeover of Nortel VoIP Business, Most Employees on Board Posted: 01 Jun 2010 12:08 PM PDT GENBAND's takeover of bankrupt Nortel Networks' Carrier VoIP and Applications Solutions (CVAS) unit is complete. The deal totaled $182 million, a small price for GENBAND to pay to get its hands on Nortel's valuable VoIP assets, employees and customers. The challenge, however, is for GENBAND to integrate Nortel's CVAS smoothly – CVAS measures five times GENBAND's size and both companies' revenue has been falling. On the plus side, GENBAND will have the expertise of almost all of Nortel's CVAS employees – most of those workers have accepted jobs at GENBAND. GENBAND has yet to disclose management and organizational structure – it's slated to do that today. GENBAND won the Nortel business at an uncontested auction in February. Nortel said the transaction won't add shareholder value, just as its previous sales have not done. Meanwhile, GENBAND's focus now turns to "fueling next-generation network migration and IMS deployment," as Charles Vogt, president and CEO of GENBAND, said in a prepared statement. GENBAND teamed with existing shareholder One Equity Partners to fund the Nortel acquisition and working capital requirements. In January 2009, the once-venerable Nortel filed for bankruptcy after months of financial struggles. The telecom equipment maker has spent the intervening year selling its various businesses – often at rock-bottom prices – to raise the money to pay off creditors.

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