Nortel to sell enterprise unit to Avaya for $900 mn

BANGALORE, INDIA: Nortel Networks Corp said Avaya Inc has emerged as the successful bidder at a bankruptcy auction for its Enterprise Solutions business and has agreed to pay $900 million in cash for the unit.

Avaya will also pay $15 million reserved for an employee retention program, the bankrupt Canadian telecom-equipment maker said on Monday.

Last week, Verizon Communications said it was ready to oppose the sale to Avaya citing public safety and security concerns.

Nortel, once North America's biggest maker of telephone gear, filed for bankruptcy protection in January.

The sale is subject to court approvals in the U.S., Canada, France and Israel as well as other regulatory approvals.

Nortel expects the sale to close in the late fourth quarter 2009.