Nortel, Koor Industries Create Nortel Networks Israel
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As part of the deal, Koor Industries will acquire Nortel Networks' 20 percent stake in Telrad Networks for US$45 million. Nortel Networks will also acquire Telrad's business outside Israel in several markets including South America and Africa for an estimated US$95 million.
The new company, of which Nortel Networks (NT) will be the majority shareholder, will build on Nortel Networks' product offerings, including optical Internet, wireless Internet, Internet telephony and e-business to distribute networking equipment in Israel and certain unspecified markets.
Nortel Networks Israel will acquire from Telrad Networks the sales, marketing and support functions of its carrier and enterprise business to distribute Nortel Networks Internet and telecommunications solutions.
According to the Israeli Ministry of Communications, the demand for state of the art, high-performance Internet solutions is set to increase rapidly since the access market in Israel is forecast to grow at between 30 and 50 percent a year for the next five years.
Broadband access solutions such as DSL and cable modems are already being rolled out aggressively by service operators in the region.
Koor Industries (KOR) is an investment holding company with headquarters in Tel Aviv. Its primary assets include telecommunications and electronics companies such as Tadiran, Telrad, and ECI Telecom, which last month purchased Hubbell's WavePacer DSL assets for an unspecified amount.