Avaya to buy Nortel’s Enterprise business

Avaya, a global leader in business communications systems, has signed agreements to purchase Nortel’s Enterprise solutions business for $475 million.

The transaction is subject to a competitive bidding process and requires the approval of the U.S. 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.

The acquisition gives the company added scale, resources and expertise to deliver a portfolio of solutions and services around the globe, says Kevin J. Kennedy, President and Chief Executive Officer, Avaya, in a release issued here on Saturday.

According to Mr. Kennedy, by combining both Avaya and Nortel Enterprise solutions technology portfolios, industry specific domain expertise, sales channels and customer bases, Avaya will redefine business communications and help customers to reduce costs, simplify operations and increase their business agility. As a result of the acquisition, Avaya would benefit from an expanded partner ecosystem, a broader portfolio, an enhanced customer base, and a greater ability to compete globally. The company also will extend relationships with system integrators and service providers who serve the enterprise market.

About 6,000 Nortel Enterprise solutions employees have joined Avaya, including 25 top managers. Today, Avaya begins to execute its plans to integrate the operations and customer care functions of the two organisations. The company expects to provide information about the new combined product portfolio and road map soon.

The deal consideration is valued at $475 m.