Menu
Ciena will pay US$769M for Nortel's metro Ethernet business

Ciena will pay US$769M for Nortel's metro Ethernet business

Ciena will pay US$769 million for the optical networking and carrier Ethernet assets of Nortel Networks' Metro Ethernet Networks business, the two companies said on Monday.

Ciena emerged victorious from an auction that took place over the weekend, beating Nokia Siemens Networks. In the end Ciena had to pay about $248 million more for the Nortel business unit than its initial bid, made public on October 7.

The approval of the deal is set to be heard by bankruptcy courts in the US and Canada on December 2, Nortel and Ciena said.

Nokia Siemens is now a two-time loser in the bidding for Nortel's assets. It previously lost out to Ericsson, which bid $1.13 billion for Nortel's CDMA (Code Division Multiple Access) and LTE (Long-Term Evolution) cellular network assets.

The market for carrier Ethernet equipment is growing, and has been defying the economic downturn, market researcher Infonetics said in a research note earlier this year.

Infonetics expects carrier Ethernet equipment r to grow to $34 billion by 2013, compared to $17 billion in 2008. That's a big cake, but many companies want a piece of it. Ciena will have to compete with the likes of Alcatel-Lucent, Cisco Systems, Ericsson-Redback, Extreme Networks and Huawei, according to Infonetics.

As a part of its bankruptcy proceedings, Nortel has been selling off the company bit by bit. Besides the Ericsson deal, Nortel sold its Enterprise business to Avaya for $900 million and sold software for wireless networks to Hitachi for US$10 million.

There are some parts remaining to be sold: Nortel plans to say more about the sale of its GSM (Global System for Mobile Communications) business this week.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags nortelCienainternational news

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments