Sweden's Ericsson buys Nortel MSS unit

STOCKHOLM, SWEDEN: Mobile network equipment maker Ericsson said on Saturday it had agreed to buy the multi-service switch (MSS) business of Canadian group Nortel, which is under bankruptcy protection, for $65 million.

Ericsson said in a statement that the MSS business offered the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions.

It said the cash purchase price of $65 million was on a debt free basis, subject to adjustments. The transaction is subject to court approval and regulatory approvals.

Nortel filed for bankruptcy protection in January 2009 and has been auctioning off its business in an effort to pay back debtholders.