| Nortel to sell optical networking and carrier ethernet businesses |
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October 7, 2009 Nortel Networks Corp.—along with its principal operating subsidiary, Nortel Networks Ltd., and certain of its other subsidiaries—has entered into a ‘stalking horse’ asset sale agreement with Ciena for its North American, Caribbean and Latin America (CALA) and Asian optical networking and carrier ethernet businesses, and an asset sale agreement with Ciena for the Europe, Middle East and Africa (EMEA) portion of its optical networking and carrier ethernet businesses for a purchase price of $390 million US in cash and 10 million shares of Ciena common stock. These agreements include the planned sale of substantially all assets of the optical networking and carrier ethernet businesses globally, including Nortel’s OME 6500, OM 5000 and CPL platforms, its 40G/100G technology, and the related services business. The agreements also include all patents and intellectual property that are predominantly used in the businesses, and provide for the transition of substantially all of Nortel’s optical networking and carrier ethernet customer contracts. Under the terms of these agreements and subject to any changes that may occur through the stalking horse and sale process, at least 2000 employees (more than 85% of the global optical networking and carrier ethernet employee base) would be offered employment with Ciena. This includes employees assigned to the optical networking and carrier ethernet businesses in certain EMEA jurisdictions who would transfer to Ciena by operation of law. NORTEL |
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