The breakup of Nortel Networks continues. The bankrupt company agreed to sell some assets related to the development of its LTE packet core network technology to Hitachi for $10 million.
Specifically, Nortel said it would give up software to support data transfers, as well as relevant non-patent intellectual property, equipment and other "related tangible assets," according to the company. The deal also includes a non-exclusive license to relevant patents and other intellectual property. Not included in the deal are legacy packet core components for Nortel's GSM and UMTS businesses. The deal must be approved by a U.S. Bankruptcy Court in Delaware and the Ontario Superior Court of Justice, and is expected to close this year.
The transaction is notable in light of two recent, major packet core deals. Last week, Tellabs announced plans to buy San Jose, Calif.-based startup WiChorus for $165 million in an effort to gain access to WiChorus' 3G/4G mobile packet core technology. And industry giant Cisco Systems bought Starent Networks earlier this month for $2.9 billion to help it deal with massive growth in mobile data traffic.
Nortel for the past several months has been liquidating its assets to the likes of Ericsson and others to pay off creditors. Currently up for auction are the company's GSM and GSM-R businesses. Qualified bidders are required to submit bids by Nov. 5, and an open auction is scheduled for Nov. 9.
For more:
- see this release
- see this Dow Jones Newswires article (sub. req.)
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