Ericsson Buys Nortel's Multi Service Switch Businesses
Published on: 25th Sep 2010
Note -- this news article is more than a year old.
Under the terms of the agreements Ericsson's purchase includes substantially all assets of the MSS business globally including the associated Data Packet Network (DPN) and Services Edge Router (Shasta) product groups. These agreements also include substantially all customer contracts and certain intellectual property related to the MSS business.
Substantially all MSS employees will have the opportunity to continue their employment with Ericsson, including those in certain EMEA jurisdictions who will transfer to Ericsson by operation of law.
Commenting on the announcement, John Luszczek, General Manager of Nortel's MSS business said: "Today's announcement is welcome news for so many stakeholders - our customers, partners, suppliers and employees. It is yet another proof-point of Nortel's ongoing commitment to preserve innovation and customer relationships that we have nurtured and grown over the past two decades."
"Our focus now is to work closely with Ericsson to ensure as seamless a transition as possible for our customers. At the same time, we will continue to deliver the superior service that our customers have come to expect from Nortel."
As previously announced, Nortel does not expect that the Company's common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.