Ericsson to pay $1.13 billion for Nortel assets

By on July 27, 2009, 3:30 PM
Swedish telecomm giant Ericsson has reportedly won an auction for the bankrupt Nortelís wireless technologies unit. Outbidding rival Nokia who recently bagged Nortelís profitable division for $650 million, Ericsson offered $1.13 billion for the wireless division.

BlackBerry-maker Research In Motion (RIM) complained of being unfairly shut out of the bidding, and was prepared to offer $1.1 billion. However, the two companies are discussing possible patent sales, as RIM looks to future-proof its business. With Nortel out of the picture, RIM has replaced it as the leading Canadian technology company.

The Ericsson-acquired division is said to be Nortelís most valuable operation. Its assets include Nortelís business in the CDMA wireless technology used in North America and in the emerging LTE technology Ė which many operators plan to use Ė as well as some patents. Ericsson is expected to rename the operation Ericsson CDMA and will offer jobs to 2,500 of Nortelís workers.




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