Nortel Networks Corp. has sold its global multi-service switch business to Marlin Equity Partners and Samnite Technologies Inc. The sale went through for $39 million. The Globe and Mail reported on the news on Friday.
Nortel reported that it has entered into a “stalking horse” asset sale of its North American, Caribbean, Latin American and Asian multi-service switch business (MSS) with PSP Holding, who is backed by Marlin and Samnite. Nortel will also sell its European, Middle Eastern and African multi-service switch business to the same buyer.
A “stalking horse” sale is an opening bid approved by a bankrupt company, and avoids other interested parties from drastically low-balling a desperate seller. Nortel will file the agreement with bankruptcy court in Delaware in the US.
From the Nortel Site: “[Our] MSS portfolio offers unprecedented revenue and profit potential for service providers and reduced networking costs for enterprises through network consolidation. On a single platform, each Multiservice Switch simultaneously supports several networking technologies… to generate revenues today with flexible evolution options to emerging technologies.”
Nortel filed for bankruptcy protection in January, 2009, and has been auctioning off its business since that time in an effort to pay back debt holders. Other sales went through to Avaya, who is still in the process of integrating parts of the Nortel business.
If you’re interested in learning more about Avaya or Nortel products, such as corporate phone systems or phone hardware, you can visit the main SE Telecom site. You can also contact SE Telecom directly with any questions by calling (877) 816-8324.
SE Telecom has offices in Toronto, Calgary, British Columbia & Montreal. We serve enterprise clients with telecommunications consulting, infrastructure, hardware, and ongoing service and support. We are dedicated to the communication success of those we work with, and view our clients as long-term partners.
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