The selloff continues at Nortel as the networking company makes another big sale of business unit.
VoiPPlanet has the details of a major selloff and just what new owner Genband is getting.
Nortel is selling its Carrier VoIP and Application Solutions (CVAS) business in a deal with IP gateway vendor Genband worth $282 million.
Unlike the other business units that Nortel has sold off over the last year, the CVAS unit sale did not go through a court-appointed auction.
Nortel entered into bankruptcy protection in January 2009 and has been selling off its business units ever since. At the end of December, Genband made an initial “stalking horse” bid that had been intended to set the floor price for an auction of the CVAS business. In each of the previous unit sales, the stalking horse bid had been followed by an auction to determine the final winner, but that did not happen with the CVAS business.
“We did not have an auction because there were no other ‘qualified bids,” Nortel spokesperson Jamie Moody told InternetNews.com. “To be clear, we did have other parties interested, but they did not produce a qualified bid.”