Avaya has signed agreements to purchase Nortel’s enterprise solutions business for $475-million.

Avaya believes the agreements are a significant step in strengthening its leadership in business communications and positioning the company to effectively deliver industry leading enterprise communications solutions to customers around the globe.
"The addition of Nortel Enterprise Solutions will increase Avaya’s global scale, expand our channel partner network, and strengthen our world-class portfolio of products and services,” says Kevin Kennedy, president and CEO of Avaya.  “This is a strategic opportunity to acquire talent and complementary assets that position the combined company for growth and success.  We are committed to protecting the communications investments of the customers of Avaya and Nortel, and to effectively executing the integration of Nortel Enterprise Solutions and Avaya.”
The transaction is subject to a competitive bidding process and requires the approval of the US Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice.  Avaya expects that hearings before those courts to approve bidding procedures will be held within the next couple of weeks, followed by an auction, with hearings for approval of the ultimate sale to be held thereafter.
In EMEA, Avaya has entered into an agreement with the Joint Administrators, on behalf of the EMEA entities for which they have been appointed and the transaction is subject to information and consultation with employee representatives and approval of the courts in France and Israel. The transaction is also subject to customary closing conditions, including receipt of necessary regulatory approvals.