Swedish-based Ericsson has walked away with winning the Nortel wireless assets that consist of CDMA and LTE technology. If meeting all requirements and getting the official seal from the federal government and U.S. and Canadian courts (scheduled for July 25th), the purchase price will be $1.13 billion (USD).
Carl-Henric Svanberg, President and CEO of Ericsson said “Acquiring Nortel’s North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE. Furthermore, by adding some 2,500 highly skilled employees, of which about 400 are focused on LTE research and development, Ericsson reinforces and expands a long-term commitment to North America”.
This comes after Nokia Seimens Networks put in an initial bid of $650 million back on June 19th. The RIM came on board and was said to offer $1.1 billion. In addition to these two players, MatlinPatterson had put an offer on the table for $725 million.
Nortel President and Chief Executive Officer, Mike Zafirovski said “The anticipated sale of our CDMA business and LTE Access assets to Ericsson for $1.13 billion represents a very positive prospect for our customers who will be able to continue their relationships with a long term partner; for employees who will have new opportunities at Ericsson and for many of our other stakeholders. I want to especially thank our customers for their tremendous support during the process, which contributed to such a positive outcome.”
RIM has yet to respond to the lost bid, but Nokia Seimens stated “Our final offer for Nortel’s assets represented a fair price, and we did not enter this process with a win-at-any-cost mindset,” said Bosco Novak, Chief Markets Operations Officer, Nokia Siemens Networks. “Ours was an opportunistic bid aimed at supporting the great progress we’ve made in North America in the past 18 months, and we are very confident that momentum will continue to grow.”