WiLAN eyes Nortel's patent hoard
Former broadband wireless manufacturer turned patent hoarder trebles its litigation budget.
Published: 8 March, 2010
READ MORE: M&A | Canada | Nortel Networks | Wi-LAN | Patents/IPR | LTE
Continued ...
At the end of last month, Nortel divested its CVAS (Carrier VoIP and Application Solutions) outfit to Genband in a deal that quintupled the acquirer's size overnight. No other bidders came to the table for CVAS, so the deal is likely to close in the second quarter, making Genband into one of the largest Carrier VoIP providers in the world. It will add Nortel's softswitches to its own gateway range. "Basically this combines a number one gateway company with a number one softswitch company to make the number one company in VoIP," said CMO Mehmet Balos. The combined company will have equipment in 65% of the top 100 operator networks. In the third quarter, CVAS' last financial reporting period, it had $210m in sales and even grew its market lead to 16%.
Genband says there is huge potential for VoIP in wireless as operators aim to offload voice traffic via femtocells and Wi-Fi and move to IMS. Its $282m bid will be adjusted for Nortel's debt, making the purchase price around $180m.
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Posted by mikean on Thursday 14th October, 2010
its a great article and informative too.thanks for sharing such articles.
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