Genband to purchase Nortel’s carrier VoIP operations

Leading developer of next-generation IP infrastructure solutions GENBAND has recently announced that it has entered into an agreement with Nortel to acquire substantially all of the assets of its Carrier VoIP and Application Solutions Business (CVAS) globally for a purchase price of $282 million and a total cost of ownership in excess of $400 million.

The proposed transaction combines GENBAND’s next-generation access, trunking, session and security gateway technology and Nortel’s widely used softswitch and application technology, offering global service providers a comprehensive VoIP portfolio. GENBAND’s vision behind the acquisition will be to institute open standards, open interfaces, promote interoperability and continue to build its global OEM business partner relationships.

GENBAND has teamed up with one of its existing shareholders, One Equity [Read more]Partners (OEP), to purchase the Nortel assets. Established in 2001, OEP manages $8 billion of investments and commitments for JPMorgan Chase & Co. in direct private equity transactions.

“From a customer and partner standpoint, we believe our vision behind this acquisition is aligned with the industry’s desired evolution path to IP,” said Charles D. Vogt, Chief Executive Officer of GENBAND. “This transaction, although potentially subject to a competitive bidding process, represents an opportunity to fuel affordable network migration to cutting-edge VoIP technology. As a leader in next generation VoIP solutions today, our aim will be to empower service providers and their partners to access a range of leading VoIP solutions to interoperate with Nortel’s installed base, without having to replace existing infrastructure and investment.
“In addition to our complementary product portfolios and customer bases, we enjoy common locations such as Texas, India and China; and, should we succeed in the auction process, we will expand our operational footprint in Canada and North Carolina. We expect to make employment offers to a significant majority of Nortel CVAS employees.”