Nortel deal with Radware worth only $17.65m

Phil Goldstein, FierceWireless
24 Feb 2009
00:00

Nortel Networks' recent deal to sell parts of its application delivery business to Radware is worth about $17.65 million, according to Nortel.

Nortel warned the US court overseeing its bankruptcy that the price for the Alteon application delivery business had fallen and could drop more, indicating that Nortel may not receive large sums as it sells other parts of its business amid its restructuring. Nortel originally paid $7.8 billion for the Alteon purchase.

The Canadian telecom equipment maker, which has until May 1 to finish restructuring and reorganizing its debt, said last week it would sell certain parts of its application delivery portfolio. Radware will receive ownership, product development and outstanding warranties, but the products will still be promoted by Nortel in an OEM relationship with Radware.

Nortel filed for bankruptcy in mid-January and since has exited the mobile Wimax business, which significantly impacted the business of its partner Alvarion. The company also decided to postpone the sale of its Metro Ethernet Networks business and pledged to cut more jobs and costs.

Recently, it has come under increasing pressure from some of its suppliers who say that their interests have not been taken into account during Nortel's restructuring, and that its plans have remained too opaque.

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