Removing the final obstacle to the sale of some of the most highly prized assets of bankrupt vendor Nortel Networks (NT), bankruptcy courts in the U.S. and Canada have approved the purchase Nortel’s carrier VoIP business by GENBAND.
GENBAND will acquire “substantially all assets of Nortel’s Carrier VoIP and Application Solutions Business (CVAS),” according to a statement from the companies, including patents other intellectual property related to “softswitching, gateways, SIP applications and TDM products and services.” The sale also includes all of Nortel’s customer contracts in the sector.
GENBAND was the only bidder for Nortel’s carrier VoIP business, in December of 2009. Expected to close in the second quarter of this year, the deal comes with an adjusted price tag of $182 million.
Already one of the top vendors of carrier VoIP equipment and software, GENBAND will become the largest provider of VoIP systems to telecom operators, with a market share of 31.4 percent, according to Synergy Research Group. With fixed-line operators as well as wireless providers migrating to IP-based platforms, demand for VoIP media gateways is exploding. The Nortel fire sale positions GENBAND as the key supplier to this market.