The deal totaled $182 million, a small price for GENBAND to pay to get its hands on Nortels valuable VoIP assets, employees and customers. The challenge, however, is for GENBAND to integrate Nortels CVAS smoothly CVAS measures five times GENBANDs size and both companies revenue has been falling. On the plus side, GENBAND will have the expertise of almost all of Nortels CVAS employees most of those workers have accepted jobs at GENBAND.
GENBAND has yet to disclose management and organizational structure its slated to do that today.
GENBAND won the Nortel business at an uncontested auction in February. Nortel said the transaction wont add shareholder value, just as its previous sales have not done.
Meanwhile, GENBANDs 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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May 18 2018 @ 20:40:07 UTC