Avaya to acquire Nortel Government Solutions from Nortel Networks

Avaya, Inc. has won a bid to acquire Nortel Government Solutions Incorporated from Nortel Networks Corporation. Both Avaya and Nortel Government Solutions are based in the US, while Nortel Networks is based in Canada.

Nortel Networks, Nortel Government Solutions, and Avaya are providers of communication systems, applications, and services for businesses, government agencies, and other organizations.

Simultaneously, Avaya will also acquire substantially all the assets of Nortel Networks' global enterprise solutions business as well as the shares of DiamondWare, Ltd. for a combined value of $900 million in cash, with an additional pool of $15 million reserved for an employee retention program.

Weil, Gotshal & Manges LLP is advising Avaya on this transaction.

Deal Type    Acquisition
Sub-Category Majority Acquisition
Deal Status  Announced: 2009-09-14

Deal Participants

Target (Company)   Nortel Government Solutions Incorporated
Acquirer (Company) Avaya, Inc.
Vendor (Company)   Nortel Networks Corporation

Deal Rationale

The transaction would strengthen the position of Avaya to deliver enhanced enterprise communications solutions to customers.

Related terms: acquisition, business, canada, government