October 25, 2014
Swedish wireless equipment maker LM Ericsson says it has signed a deal to buy a majority of Nortel Networks' North American wireless business for $1.13 billion.
The Stockholm-based group said the purchase is on a cash and
debt-free basis and covers the older CDMA and newer LTE wireless
businesses of Nortel's Carrier Networks unit.
Nortel placed its wireless business up for auction yesterday
behind closed doors in New York City.
Nortel, a former telecommunications equipment powerhouse, sought
bankruptcy protection in January. The auction was planned after the
company said it planned to liquidate its business.
The deal is subject to approval by relevant authorities.
In a statement, Nortel said it would "work diligently" with
Ericsson to close the sale later this year. It also said it would
stay focused on finding the right buyers for its other businesses.