Genband set to dominate carrier VoIP market with Nortel assets

Stuart Corner
Thursday, 25 February 2010 14:56

IT Industry - Market

Nortel Networks has announced that, rather than going to auction and will work towards the previously announced plan to sell its carrier VoIP and application solutions (CVAS) business to Genband for $US182m.

The price represents a valuation of $US282m less balance sheet and other adjustments estimated at $US100m.

Genband will acquire substantially all product platforms, all patents predominantly used, and other IP exclusively used in Nortel's CVAS business, including softswitching, gateways, SIP applications, and TDM products and services. The agreement will also provide for the transition of substantially all of Nortel's CVAS customer contracts to Genband. The sale is subject to court approvals in the US and Canada, which Nortel will seek at a joint hearing on March 3, 2010, and in Israel.

Genband quoted Diane Myers, directing analyst at Infonetics, saying: "Genband's acquisition of Nortel CVAS will catapult the company to the top of the carrier VoIP equipment market by joining market-leading softswitches with a leader in media gateways."

"The fact that Genband plans to keep all the pieces intact will change the face of the carrier VoIP business. While Nortel CVAS' VoIP equipment and applications solutions mesh nicely with Genband's portfolio, Nortel's installed base of DMS customers is also a golden nugget. The legacy business is a good fit for Genband since they have mastered maintaining, supporting and migrating legacy switches to the point where they are difficult to beat."

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