Nortel Networks (NNL) and Nortel Networks (NNI) to sell assets to Hitachi

Nortel Networks Limited (NNL) and Nortel Networks, Inc. (NNI) have entered into an agreement to sell certain of their assets associated with the development of next generation packet core network components to Hitachi, Ltd., a Japanese manufacturer of electrical and electronic products, for $10 million.

Both NNL and NNI are the US-based subsidiaries of Nortel Networks Corporation, a US-based supplier of networking products and solutions for telecommunications providers, cable operators, enterprise communications and other related service providers.

Under the terms of the agreement, the assets include software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property. The transaction is expected to close in 2009.

Jefferies & Company, Inc. is acting as financial advisor to creditors of Nortel Networks Corporation on the transaction.

Deal Value (US$ Million) 10
Deal Type                Acquisition
Sub-Category             Asset Purchase
Deal Status              Announced: 2009-10-26

Deal Participants

Target 1 (Company) Nortel Networks Limited - Packet Core Network Components Assets
Target 2 (Company) Nortel Networks, Inc. - Packet Core Network Components Assets
Acquirer (Company) Hitachi, Ltd.
Vendor 1 (Company) Nortel Networks Inc
Vendor 2 (Company) Nortel Networks Limited

Related terms: acquisition, communications, electrical, japan, manufacturer, networking, patent, products, property, software, technology, telecommunications, wireless