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Genband To Buy Nortel VoIP Assets

Genband, a Plano, Texas-based provider of IP infrastructure solutions, has agreed to buy most of the assets of Nortel Networks’ carrier VoIP and applications solutions businesses, for approximately $282 million. Genband is being backed on the deal by existing shareholder One Equity Partners. Genband had originally been named stalking horse bidder for the assets, and no other suitor emerged.


GENBAND, Inc., a leading developer of next-generation media, session and security gateway solutions, today announced that it will acquire substantially all assets of the Nortel Carrier VoIP and Application Solutions Business (CVAS). The acquisition is subject to court and certain regulatory approvals in Canada, the United States and other jurisdictions, as well as other closing conditions.

The acquisition will combine GENBAND’s next-generation media, session and security gateway technologies and Nortel’s softswitch, media gateway and application technologies, offering service providers a best-in-class, end-to-end switching and global services portfolio.

“By melding these market-leading technologies into GENBAND, we will create the most comprehensive, standards-based switching portfolio in the world,” said Charles D. Vogt, president and chief executive officer of GENBAND. “Our vision is to fuel the industry’s desired network migration path to cutting-edge IP technology by instituting open standards, open interfaces and interoperability. No other supplier will be better positioned to enable service providers a more cost effective means to optimize their existing fixed TDM networks, and transition from fixed TDM to IP and from fixed to mobile convergence.”

Once the transaction is approved by the courts and closed, GENBAND will have enhanced its research and development, sales, and support operations spanning the globe. The company will have products deployed with over two-thirds of the world’s top 100 service providers and will cover broad markets including fixed, mobile, cable and broadband operators. GENBAND will continue its commitment to existing business partnerships with plans to expand product, service and support relationships following the close of the Nortel CVAS transaction.

GENBAND has teamed with One Equity Partners (OEP) and other existing shareholders to secure the Nortel assets.

“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,” said Diane Myers, Directing Analyst, Infonetics. “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.”

GENBAND is a global leader and innovator of next generation IP media, session border and fixed mobile convergence security solutions deployed in over two-thirds of the world’s 100 largest service providers. These high-performance gateway solutions are at the core of fixed and mobile networks around the world – evolving, securing and enhancing communications networks. Headquartered in Plano, Texas, GENBAND has Centers of Excellence around the world and serves customers and partners in more than 80 countries. Additional information is available at